The Fair Labor Standards Act (FLSA) will affect Florida’s small businesses come Dec. 1 due to a scheduled update to the law expected to expand overtime benefits to approximately 331,000 workers in the Sunshine State.
Florida’s total number of affected employees ranks third largest in the nation, behind Texas and California. The new regulation will double the minimum annual salary for those workers eligible for overtime pay from $23,660 to $47,476; that figure will then be adjusted every three years starting in 2020. Until now, salaried employees earning more than $23,660 have been exempt from overtime benefits.
The decision handed down by the U.S. Department of Labor in May is expected to impact 4.2 million employees nationally. Because the FLSA provides no exemptions for small businesses, those with annual sales exceeding $500,000 must comply.
A recent poll conducted by Manta showed that more than half of small business owners in the U.S. (52 percent) were not cognizant of the law’s imminent change despite the plan having been initiated over a year ago.
Michael Myhre, CEO and network state director for the Florida Small Business Development Center in Pensacola, pointed out that entrepreneurs should plan ahead in order to be fully prepared for the changes, noting that small businesses are far more likely to experience disruption than their larger counterparts.