Employers in the country’s third largest state have many new elements of labor law to consider this fall. Here is a summary of some of the most important things affecting people with workers in the Sunshine State.
New law on independent contractors reporting
Florida’s latest employment law, effective October 1, 2021, requires Florida employers to report new independent contractors the same way they report new employees to the Department of Revenue’s New Hire Directory. from Florida.
The law requires that a service recipient report to the Department any new, non-employee employee to whom the service recipient pays more than $ 600 in a calendar year for services rendered by the individual. within the framework of the commercial or commercial activity of the beneficiary of the service. Fortunately, that doesn’t mean the average homeowner will have to start reporting their plumber or housekeeper, but the average business owner should. Previously, the law only required employers to report newly hired employees to the ministry, while the declaration of independent contractors was optional.
To comply with the law, employers must declare the following: the name of the independent contractor; address; Social Security Number (or other identification number assigned under Section 6109 of the Internal Revenue Code); the date on which the paid services were first performed by the individual; and the name, address and employer identification number of the recipient of the service.
Information should be submitted to the Florida New Hire Reporting Center website within twenty days of the first payment to the independent contractor, or the date on which the company and the independent contractor enter into the contract, whichever occurs first.
An increase in the minimum wage
On November 3, 2020, voters in Florida approved a constitutional amendment to gradually increase the state’s minimum wage each year until it hit $ 15 an hour in September 2026. Therefore, on September 30, 2021, the Florida’s minimum wage rose from $ 8.65 to $ 10 an hour – the largest percentage increase in state history.
Florida businesses are required to display Florida state and federal labor law posters where employees can easily view them. Federal minimum wage poster available here, and the updated Florida minimum wage poster can be found here.
A reminder on the requirements of the E-Verify system
As of January 1, 2021, Florida’s E-Verify Mandates went into effect, requiring public and private employers to comply. The law, § 448.095, makes use of the web-based E-Verify system, regulated by the Department of Homeland Security, mandatory for all government and public employers.
In accordance with this law, every employer, contractor and public subcontractor in the State of Florida is required to register and use the E-Verify system to verify the identity and confirm the eligibility of all new employees. The law defines an “entrepreneur” as a person or entity who has entered into or attempts to enter into a contract with a public employer to provide labor, supplies or services to the public employer in exchange for a salary, wages or other remuneration. . A public employer includes any state, region, county, local or municipal government, public school, community college, or state university.
In addition, no public market can be concluded without an E-Verify certificate. Any subcontractor working on a public contract must provide the contractor with an affidavit (which must be kept by the contractor for the duration of the contract), stating that the subcontractor does not employ, contract or subcontract not with unauthorized strangers. Contractors will need to follow this process for all public projects, and they cannot contract with another party unless the party registers and uses the E-Verify system.
The new law also requires a party to a public contract to terminate the contract if it has a good faith belief that another party to the contract is employing an unauthorized person, or is not registered and not using E-Verify.
Finally, the law applies to all private employers in two cases:
1) If the private employer requests taxpayer funded incentives through the State Department of Economic Opportunities.
2) If the private employer has a contract with a public employer.
Either way, however, all private Florida employers must still complete and retain I-9 Employment Eligibility Verification Forms for the duration of an employee’s employment and for at least one (1) year from the date of termination of the employee or three (3) years. of hiring, whichever is later under the Federal Immigration Reform and Control Act of 1986. Finally, under the new Florida law, any private employer who not Using E-Verify must also keep copies of the documents used to complete Form I-9 for three (3) years.
Florida employers must remain compliant with the adoption of these new requirements and the use of the E-Verify system