How do you calculate overtime pay in Florida?

Florida, known for its sunny beaches and vibrant culture, also maintains specific regulations – closely aligned with federal standards set by the Fair Labor Standards Act (FLSA) – to ensure that employees working long hours are fairly compensated. This article aims to explain the process of calculating overtime in Florida, offering a comprehensive guide to navigate these regulations effectively.

Which Overtime Laws Apply in Florida?

Florida follows the Fair Labor Standards Act (FLSA) for determining overtime eligibility and calculations. The FLSA is a federal law that sets minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The state does not have its specific overtime laws, making the FLSA the primary guide for employers and employees. 

How Much is Overtime Pay in Florida?

In line with FLSA guidelines, Florida mandates that eligible employees receive overtime pay at a rate of 1.5 times their regular pay for hours worked beyond 40 in a workweek. There are no provisions for daily overtime, unlike some states such as California.

If you want to learn more, check out our guide on Florida overtime laws.

Who is Eligible for Overtime Pay in Florida?

In Florida, overtime eligibility primarily distinguishes between exempt and non-exempt employees, governed by the FLSA. Non-exempt employees, typically hourly workers engaged in manual or customer service roles, are entitled to overtime pay. These employees usually need to:

• Earn less than $844 weekly or $43,888 annually.
• Work under supervision, performing repetitive or physical tasks.

Conversely, salaried professionals, executives, and various professionals often do not qualify for overtime due to their job nature and compensation levels. Independent contractors are also ineligible for overtime as they are not considered employees. Tipped employees, although generally qualifying for overtime, may not always reach the 40-hour weekly threshold required for overtime eligibility due to flexible working hours.

Check out our guide on overtime rights in Florida.

To calculate overtime for hourly employees, multiply the employee’s regular hourly rate by 1.5 for each hour worked beyond 40 in a workweek.

Example: An hourly worker earning $15 per hour works 42 hours in one week. Their overtime calculation for 2 hours would be 2 x $15 x 1.5 = $45 in overtime pay.

To learn more, you can read our guide on your rights as an hourly employee in Florida.

In Florida, determining overtime pay for salaried employees involves a few steps to convert their salary into an hourly rate, based on a standard 40-hour workweek:

• Step 1: Determine Weekly Salary: First, identify the employee’s weekly salary, which is the fixed weekly payment regardless of the number of hours worked.
• Step 2: Calculate the Hourly Rate: Divide the weekly salary by the number of hours the salary is intended to cover, typically 40 hours, to find the regular hourly rate.
• Step 3: Compute Overtime Pay: For any hours worked over 40 in a workweek, multiply the excess hours by 1.5 times the regular hourly rate to calculate overtime pay.

Consider a salaried employee in Florida who earns a weekly salary of $800. To calculate their overtime:

• Weekly Salary: $800
• Regular Hourly Rate: $800 divided by 40 hours = $20 per hour
• Overtime Calculation: If the employee works 45 hours in a week, the five hours over the standard forty hours are eligible for overtime: 5 hours x $20 x 1.5 = $150

Therefore, for a 45-hour workweek, the employee’s overtime compensation would be $150, in addition to their standard weekly salary of $800, making the total compensation $950 for that week.

For more details, check out our guides on salaried employees laws and your rights as a salaried employee in Florida.

How do you Calculate Overtime Pay for Tipped Employees in Florida?

The first step in calculating overtime for employees paid on a piece rate basis is to figure out the “regular rate” of pay. This is done by dividing the total earnings for the week by the total hours worked within that week. For any hours worked beyond 40, the employee is entitled to an additional half of this regular rate for each overtime hour, on top of their complete piecework earnings.

Consider a piece-rate employee who works 50 hours a week and finishes 50 pieces, with a rate of $10 per piece, totaling $500 in earnings. The regular rate for that week is calculated as $500 divided by 50 hours, resulting in $10.00 per hour. For the overtime hours, the employee earns an extra $5.00 (half of the regular rate) for each of the 10 hours over 40, adding up to an additional $50.00. Therefore, the total earnings for the week amount to $550.

Alternatively, piecework employees can be compensated for overtime by receiving one and a half times the piece rate for pieces completed during overtime hours, provided this arrangement is agreed upon in advance. This piece rate must be the same as that paid for non-overtime hours and must ensure that the employee earns at least the minimum wage for every hour worked.

How do you Calculate Overtime Pay for Commission Employees in Florida?

While commissions are prevalent in industries like retail, sales, and finance, they’re often paid as incentives for exceeding sales targets or meeting specific goals. Commissioned employees can be paid purely on commissions or receive a mix of hourly wages and commissions. However, to be exempt from receiving overtime, commissioned employees must:

• Work for a retail or service establishment.
• Earn a regular rate of pay exceeding 1.5 times the federal minimum wage for every hour worked in a workweek when overtime is worked.
• Receive more than half of their total earnings from commissions over a representative period, not exceeding one year.

Consider a commissioned employee earning a weekly commission of $1800 for a 50-hour workweek. Dividing $1800 by 50 gives an hourly rate of $36, well above the required 1.5 times the federal minimum wage of $10.88. Thus, this employee would be exempt from overtime pay.

For employees earning both regular wages and commissions, the calculation becomes slightly more complex. Combine the total earnings from wages and commissions for the week, then divide by the total hours worked to find the regular rate of pay.

For example, an employee earns $15/hour plus a $100 weekly commission over 50 hours, totaling $850 ($750 from hourly pay and $100 commission). Dividing $850 by 50 hours results in a $17/hour rate. If the employee’s compensation from commissions does not exceed half of their total earnings, they would not be exempt, and overtime pay is required for hours worked beyond 40.

The statute of limitations refers to the legally prescribed time limit within which a claim must be filed. For unpaid overtime, the Fair Labor Standards Act (FLSA) sets this time limit at two years, extending to three years for deliberate violations. Minimum wage violation claims benefit from a longer statute of limitations of four years, providing employees with a significant window to seek legal recourse.

In Florida, there aren’t specific state laws that mandate recordkeeping practices for employers regarding employee wages and hours. Instead, employers must adhere to federal regulations, notably those set forth by the FLSA, which outlines comprehensive requirements for maintaining employee records. According to the FLSA, employers are required to keep records that include:

• Employee’s name and social security number.
• Residential address.
• Date of birth, along with the employee’s sex and occupation.
• The starting time and date of the employee’s workweek.
• Hours worked each day and total hours worked each week.
• The basis on which the employee’s wages are paid.
• Regular hourly pay rate.
• Total daily or weekly earnings, with overtime earnings noted separately.
• Any additions to or deductions from the employee’s wages.
• Total wages paid each pay period.
• Dates of payments and the pay periods they cover.

For compliance, payroll records should be retained for  3 years. Records that detail the computation of wages, such as timesheets and work schedules, are required to be kept for at least 2 years.

To ensure compliance and streamline these processes, employers can consider leveraging technology solutions like time and attendance software. One such tool, Jibble offers a way to accurately track work hours, store essential employee information securely, and integrate with payroll systems, simplifying adherence to FLSA requirements.