How to Defuse Florida’s 9t Laws Most Critical Employment Laws NIBM N AT I O N A L I N S T I T U T E O F B U S I N E S S M A N A G E M E N T PDFFL1 AUTHOR Anniken Davenport, Esq. EDITOR Kathy Shipp EDITORIAL DIRECTOR Patrick DiDomenico MARKETING DIRECTOR Linda Smith PUBLISHER Phillip A. Ash © 2007, National Institute of Business Management, 7600A Leesburg Pike, West Building, Suite 300, Falls Church, VA 22043-2004. Phone: (800) 543-2055. All rights reserved. No part of this special report may be reproduced in any form or by any means without written permission from the publisher. Printed in U.S.A. The information presented in this special report is not legal advice. This publication is designed to provide accurate and authoritative information on Florida employment law, but it is sold with the understanding that the publisher and authors are not engaged in rendering legal, accounting or other professional advice. If legal advice or other expert assistance is needed, the services of a competent professional should be sought. Legal cases turn on the facts of each case, and an attorney well versed in the unique facts of your case and the law is best qualified to assist you. Table of Contents Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1. The Florida Unemployment Compensation Law . . . . . . . . . . . . . . . . . . . . . 2 2. The Florida Workers’ Compensation Law . . . . . . . . . . . . . . . . . . . . . . . . . . 5 3. The Florida Civil Rights Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 4. The Florida Minimum Wage Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 5. The Florida Workforce Investment Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 6. The Florida Child Labor Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7. The Florida Clean Indoor Air Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 8. Local Ordinances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 9. Common-Law Protections for Employees . . . . . . . . . . . . . . . . . . . . . . . . . 11 Online Resources: Florida Employment Law . . . . . . . . . . . . . . . . . . . . . . . . . 12 Florida’s 9 Most Critical Employment Laws 1 Executive Summary s a Florida employer, you don’t have to comply with just federal employment laws, such as the Civil Rights Act, OSHA and the Fair Labor Standards Act. You must also follow state laws on everything from workers’ compensation to jury duty. Several cities and towns also get in on the act. Each wants to control some aspect of how you run your business and treat your employees. For example, some municipalities regulate how much you must pay employees above the federal and state minimum wage; others make it illegal to discriminate against employees and applicants based on their sexual orientation. Running afoul of any of these government units can cost you time and money. Several laws even impose personal liability on supervisors and managers who violate their mandates. A few scenarios show how your organization could easily trip over state and local laws: A • Opening a branch location in Orlando? If you do work for the city, be sure to comply with its living-wage ordinance. • Making a deduction from an employee’s paycheck for damages or shortages? Better brush up on how to get your money back before you withhold the value of the cell phone he lost. • Require employees to wear uniforms at work? Don’t even think about charging them for the clothing unless they can wear it on the street as casual attire. • Want to pay employees by check? Make sure the bank on which the check is drawn will cash it for the full amount even if the employee has no account there. • An employee quit without notice? Make sure you figure out her commissions and other incentive pay before the pay period ends even if those payments wouldn’t be due until much later. These and other Florida laws give employees rights far beyond anything mandated by the federal government, the EEOC and the U.S. Labor Department. But rest assured, you can comply with Florida’s employment laws without driving yourself insane or your company out of business. Knowledge is power. This special report will quickly bring you up to speed on the top Florida employment laws and provide the basic framework for handling employees in the Sunshine State. Meanwhile, your subscription to Florida Employment Law will keep you updated on the latest developments, court cases and new laws that affect your role as HR professional, supervisor or business owner. We’ll provide the specialized information you need, including the latest on immigration reform, which will disproportionately affect Florida employers. If this special report enables you to spot a problem before it’s too late, you will have done yourself and your organization a huge favor. Too often, Florida employers land in trouble because they’re unaware of a state law or local ordinance regulating some aspect of their business. © 2007 National Institute of Business Management www.TheHRSpecialist.com/FL 2 National Institute of Business Management 1. The Florida Unemployment Compensation Law lorida’s unemployment compensation law, like that of many other states, provides temporary payments to employees who lose their jobs through no fault of their own. The program draws from a public policy that assumes “unemployment is a serious menace to the health, morals and welfare” of the citizens of Florida and is aimed at lightening the job-loss burden for workers and their families. The Florida Unemployment Compensation Law is complex and in some cases holds employers liable for unemployment insurance (UI) payments even when former employees weren’t fired but quit their jobs. The law requires employers to post workplace notices on unemployment benefits, rights and claims. (You can obtain notices as well as all required employer forms from the Florida Agency for Workforce Innovation at www.floridajobs.org/.) Employees who are eligible for unemployment payments are entitled to 50 percent of their average weekly wages, up to a maximum of $275 per week, and can ordinarily collect payments for up to 26 weeks. Employees who find part-time work while on unemployment may still be eligible; however, their payments will be reduced dollar for dollar once they earn at least eight times the federal minimum wage ($5.15 per hour). Not every employee who loses his job can expect to collect unemployment. As a general rule, former employees are eligible for unemployment compensation when they’re not responsible for their dismissal. In other words, unless a company fired them for misconduct, they’re probably eligible for benefits. When you terminate an employee, the burden of proof is on you. That may sound F © 2007 National Institute of Business Management simple, but it isn’t. Be prepared to prove that you fired the former employee for a solid reason (for cause), such as stealing, cheating, harassing or discriminating against another employee, failing a drug test or ignoring safety precautions. Employees who quit may still be eligible for benefits, but the burden of proof is on them to show that they resigned “for good cause” connected with their employment. As the employer, you will receive notice when the Agency for Workforce Innovation determines a former employee is eligible for UI benefits. You have the right to appeal the decision. Make sure you postmark your response within 20 days of the date you received the notice or 20 days after the agency mailed it. These are tight deadlines so don’t delay. Here are some common tricky situations in which employees who quit or were fired can sometimes be eligible for benefits and sometimes not. Misconduct. Employees who are fired for misconduct (violating a company rule or policy) aren’t entitled to benefits right away. But their disqualification lasts for only about six weeks (the week of their discharge plus the next five weeks). After that period, they can start collecting benefits. Trailing spouse. In this day and age of dual-career families, a husband or wife may quit a job when the spouse accepts a position in another city or state. While some states do allow unemployment benefits for a trailing spouse, Florida doesn’t consider this a good cause connected with work. Therefore, the trailing spouse wouldn’t be eligible to collect unemployment. The only exception: when a spouse on active duty in the military is moving under orders. www.TheHRSpecialist.com/FL Florida’s 9 Most Critical Employment Laws Retirement pay. Employees who are eligible for social security retirement benefits can still collect unemployment. If they begin collecting on a company-sponsored retirement plan, however, their weekly benefits may be reduced: • If the company and the employee both contributed to the retirement plan, weekly unemployment benefits would be reduced by 50 percent. • • If the employer contributed 100 percent to the retirement plan (such as a defined benefit plan), the employee couldn’t collect unemployment. If the employee contributed 100 percent to the plan (such as a companysponsored 401(k) with no employer match), he would be eligible for the entire weekly UI payment. Visa holders. Foreign citizens working in the United States on H1-B visas aren’t entitled to unemployment benefits if their employers permanently terminate them. That’s because H1-B visa holders are authorized to work for only one employer and thus wouldn’t be ready, willing and able to seek other employment. But if the same workers are only temporarily laid off and have a specific return date, they can collect unemployment. Ready and able to work. To be eligible for UI benefits, claimants must be physically and mentally capable of working. So, if someone on unemployment is hurt in a car accident, for example, her benefits will stop until she’s been cleared to return to work. Elder care, child care and transportation. Claimants who must care for family members or don’t have transportation to and from work may not be eligible for benefits. Because they have time commitments and transportation problems that © 2007 National Institute of Business Management 3 prevent them from accepting a job immediately, they’re not ready and able to work. Active job search. To receive benefits, claimants must actively seek work: i.e., contact at least three employers per week about job openings. Some claimants may be asked to keep records of their attempts to find a job. Refusing a job offer. Claimants who refuse to accept a job offer may lose their benefits. They may also have to accept less money or a different type of job if they’ve been unemployed for a long time. Job transfer. If an employer relocates a business or asks an employee to transfer to another location as a condition of staying employed, the employee may quit and be able to collect unemployment. Each case is considered on an individual basis and depends on whether the move will create an undue hardship on the employee. Representing your organization Employers should carefully consider whether they want to contest an unemployment claim and, ideally, consult an employment-law expert about the best course of action. This is true especially if you suspect the employee will file a discrimination lawsuit against your company. What you say about your organization’s actions can come back to haunt you, especially if the former employee’s attorney uses the relatively lowstakes unemployment setting to fish for information for a lawsuit against you. Your stated reason for firing an employee may bind you in a later, high-stakes lawsuit. For example, if you testify that you fired an employee because of her frequent absences, the records you produce could be used later to show you violated the Family and Medical Leave Act (FMLA) by counting her sick-child call-off as an unexcused absence. www.TheHRSpecialist.com/FL 4 National Institute of Business Management That’s why it’s best to run your expected testimony and documentary evidence by an attorney before representing your organization at a hearing. You don’t want to say anything that could turn into ammunition against you later, or be silent about something that will prevent you from putting on evidence later. Sometimes, it may be best to have an © 2007 National Institute of Business Management attorney handle the case. Other times, if you and your attorney think the former employee will likely file a state or federal discrimination lawsuit, it may be better to forgo a hearing altogether to avoid showing your cards too early. Not contesting an unemployment claim won’t prevent you later from showing you fired an employee for a legitimate reason. www.TheHRSpecialist.com/FL Florida’s 9 Most Critical Employment Laws 5 2. The Florida Workers’ Compensation Law he Florida workers’ compensation system protects employees who are injured on the job by replacing lost wages while they recover. The system works as a no-fault guarantee. The law entitles employees who can show they were hurt while working to a portion of their earnings and paid medical care for their injuries. They needn’t prove that their employer was negligent. In exchange for the no-fault guarantee, the law doesn’t permit workers to sue for negligence and collect far more than just lost wages and medical payments. The Florida Department of Financial Services administers the law through its Division of Workers’ Compensation (www .fldfs.com/wc/). In 2005, Florida’s legislature modified the workers’ compensation system. Under the new system, workers’ compensation carriers must pay compensation or benefits only when the workplace injury is more than 50 percent responsible for the worker’s condition. This determination is made based on medical evidence. Some employees aren’t eligible for workers’ comp payments. For example, employees can’t collect benefits if they: supplied safety equipment (benefits reduced by 25 percent). T • Are injured while under the influence of alcohol or illegal drugs, or refuse to submit to a drug test following the accident. • If the injured worker is a professional athlete (benefits reduced by 50 percent). In the construction industry, contractors are responsible for making sure their subcontractors carry workers’ comp insurance. Contractors who shave dollars off their bid by skipping workers’ comp coverage to win a bid may be held liable to losing bidders who played by the rules. In addition, Florida’s law severely restricts claims for mental or nervous conditions. Workers’ comp won’t pay unless “an accompanying physical injury” requires medical treatment. The state law works in concert with other laws, such as the Americans with Disabilities Act (ADA). Employers with at least 15 employees must make reasonable accommodations for workers who can’t perform their jobs’ essential functions. Virtually all Florida businesses must carry workers’ comp insurance. Even sole proprietors who employ another person must provide coverage or be approved for self-insurance. Tips for reducing workers’ comp costs • Are injured while attempting to harm themselves or unlawfully injure another person. • Commit fraud with the intent to collect benefits. One way to reduce your workers’ comp costs is to encourage employees to return to work as soon as they’re able. You can, for example, make available light-duty positions for injured employees who may not be ready to return to more demanding jobs. Work with your insurance carrier to develop a light-duty program. In some circumstances, a worker won’t receive full benefits: ADA, FMLA and workers’ compensation If the injured worker had knowingly refused to wear proper employer- Employees injured at work may also be disabled under the ADA or the Florida Civil © 2007 National Institute of Business Management www.TheHRSpecialist.com/FL • 6 National Institute of Business Management Rights Act and have a serious medical condition under the FMLA. So HR professionals should make sure to coordinate any unpaid leave and reasonable accommodations, such as light-duty work or intermittent leave, with the insurance carrier. It’s important to coordinate those claims: Nothing will sink a case faster than evidence that an employer acquiesced to a workers’ comp claim but refused to allow an FMLA claim for the same condition. 3. The Florida Civil Rights Act he Florida Civil Rights Act (FCRA) prohibits discrimination or segregation in employment and access to places of public accommodation because of race, color, age, national origin, sex, handicap, familial status or religion. The law prohibits employers from discriminating against any member of the protected classes listed above in any job-related action, including recruitment, interviewing, hiring, promotions, discharge, compensation and the terms, conditions and privileges of employment. The FCRA is the state version of the federal Civil Rights Act, Age Discrimination in Employment Act, Equal Pay Act and T © 2007 National Institute of Business Management ADA all rolled into one. As under those federal laws, the FCRA covers employers with 15 or more employees. The state law as well as the ADA requires places of public accommodation to make reasonable modifications to their policies, practices or procedures to ensure access for people with disabilities. Reasonable accommodations may include providing auxiliary aides and making physical changes to ensure paths of travel. The Florida Commission on Human Relations (http://fchr.state.fl.us) administers the Civil Rights Act. (For details on the main federal jobdiscrimination laws, go to www.eeoc.gov.) www.TheHRSpecialist.com/FL Florida’s 9 Most Critical Employment Laws 7 4. The Florida Minimum Wage Act ffective Jan. 1, 2006, the minimum wage in Florida is $6.40 per hour ($1.25 higher than the federal minimum). The Agency for Workforce Innovation administers the wage and hour law. In 2004, a state constitutional amendment established Florida’s minimum wage. Every year, the agency calculates the following year’s minimum wage based on the rate of inflation for the year ending Sept. 1. The new minimum wage, announced each E Sept. 30, takes effect the following Jan. 1. The Florida Minimum Wage Act follows the federal Fair Labor Standards Act in all respects except the minimum wage. Specifically, exempt workers under the FLSA are also exempt under the state law. (For more information on the state law, go to www.doh.state.fl.us/Environment /community/fciaa/index.html. To review the FLSA’s regulations, go to www.dol.gov/flsa.) 5. The Florida Workforce Investment Act lorida’s Workforce Investment Act (WIA) was designed as part of the welfare reform movement of the ’90s. Like its federal counterpart, the Florida WIA provides incentives and assistance to employers who hire workers who had been long-term welfare recipients. Florida’s WIA includes the state’s 1998 Untried Worker Placement and Employment Incentive Act, which also provides incentives for Florida employers to hire difficultto-place workers. Since many of them suffer from mental or physical disabilities, the ADA may protect them as well. Under the WIA, employers may receive incentive payments from the state’s regional work force boards for workers who maintain full-time employment for six months. Employees hired under the program may be subject to a maximum probationary period of six months. (To locate the regional work force board that serves your area, go to www.workforceflorida.com/wages/wfi F © 2007 National Institute of Business Management /boards/index.htm.) The law requires employers to provide workers’ comp and unemployment compensation coverage for those workers. But oftentimes, employers can offset those costs by using federal tax credits and subsidies. Receiving state WIA incentive funds doesn’t affect employers’ federal tax incentives. Employers may not displace other employees to hire WIA workers. Once the workers complete one year of employment, employers receive no more incentives or subsidies. To keep their standing in the program, employers must maintain a good record of employing and developing hard-to-place workers; otherwise, they risk being disqualified from the program. The regional work force boards partner with the state’s Agency for Workforce Innovation (www.floridajobs.org/PDG/wia .html) to administer the law. www.TheHRSpecialist.com/FL 8 National Institute of Business Management 6. The Florida Child Labor Law lorida’s child labor law prohibits employers from hiring minors under age 16 to work in hazardous jobs ranging from operating industrial machinery and meatpacking equipment to even handling certain dangerous animals. Teens must be at least 18 years old to work: F • With explosives or radioactive materials or around toxic substances such as pesticides • On scaffolding, roofs or ladders above six feet • On an electric apparatus or wiring • In the mining industry and most meatpacking jobs • Operating any power-driven woodworking machine; hoisting apparatus; metal-forming, punching or shearing machines; bakery machines; paper products and printing machines • In the manufacture of brick, tile or other similar products • In wrecking or demolition; excavation operations; logging or sawmilling; firefighting. Minors under age 16 may not work prior to 7 a.m. or past 7 p.m. on school © 2007 National Institute of Business Management nights. During holidays and summer vacations they may work until 9 p.m. They may not work more 40 hours a week or eight hours a day. For minors under age 18, employers may not schedule them to work before 6:30 a.m. or past 11 p.m. or for more than eight hours a day prior to a school day. When school’s in session, 16- and 17-year-olds may not work more than 30 hours per week. Minors under age 18 may not work more than six consecutive days in one week. They may not work more than four hours continuously without a 30-minute lunch break. (Any breaks shorter than 30 minutes aren’t considered an interruption of continuous work.) Exception: Summer camps run by nonprofits that employ workers ages 16 to 18 during June through September are exempt from the law. The Bureau of Child Labor in the Department of Business and Professional Regulation administers the law. For more information, go to ww.state.fl.us/dbpr/reg /childlabor. (The federal Fair Labor Standards Act also sets child labor rules. To review those regulations, go to www.dol.gov/dol/topic /youthlabor.) www.TheHRSpecialist.com/FL Florida’s 9 Most Critical Employment Laws 9 7. The Florida Clean Indoor Air Act he state recently amended the Florida Clean Indoor Air Act to comply with the Florida Health Initiative. The law prohibits smoking in all enclosed indoor workplaces except: T • Private residences or private clubs • Retail tobacco shops • Smoking-designated guest rooms in hotels and motels • Stand-alone bars • Designated smoking rooms under the control of the U.S. Bureau of Customs and Homeland Security in airports • Facilities that conduct medical or scientific research on smoking cessation The law defines an “enclosed indoor workplace” as one predominantly or totally bounded on all sides and above by physical © 2007 National Institute of Business Management barriers. (“Predominantly bounded” means either the top barrier covers more than 50 percent of the roof space or physical barriers cover more than 50 percent of the sides.) Under the clean indoor air act, employers may still provide designated smoking rooms for employees. The law requires employers to develop and implement policies that deal with violations and address the consequences for employees who break the smoke-free rule. The Florida Department of Health and the Florida Department of Business and Professional Regulation enforce the law. Fines range from $250 to $2,000 per violation, depending on the business size and the number of previous violations. For more information, go to www.doh.state.fl.us /Environment/community/fciaa/index.html. www.TheHRSpecialist.com/FL 10 National Institute of Business Management 8. Local Ordinances ocal governments can (and sometimes do) legislate what employers can and can’t do within their jurisdictions. For example, since the Florida Civil Rights Act contains no protections against discrimination based on sexual preference, some local governments have adopted ordinances to address the issue: Covered employers that don’t provide health benefits must pay them 20 percent more than the hourly wage. L • • Orlando: All organizations with six or more employees must comply with the city’s anti-discrimination ordinance. It prohibits discrimination on the basis of sexual orientation, race, national origin, religion, gender, disability and age. Miami/Dade County: The county’s human rights ordinance protects gays and lesbians from discrimination in employment, housing, credit and accommodations. Courts have ruled, however, that the ordinance doesn’t grant them the right to sue; aggrieved employees may seek only injunctive relief. Additionally, several municipalities have living-wage laws that mandate higher hourly pay than the state’s minimum wage (currently $6.40 per hour): • Orlando: Workers employed by the city or its contractors must earn $8.50 per hour and receive health benefits. © 2007 National Institute of Business Management • Palm Beach County: Contractors working on county construction contracts worth more than $100,000 must pay their workers $9.73 per hour if they offer health benefits, or $10.04 hourly if they don’t provide health coverage. • Broward County: County employees and contractors providing food preparation, security, maintenance, clerical work, transportation, landscaping, printing or reproduction services must earn $9.57 per hour if they have health coverage, and $10.82 per hour if they don’t. • Miami Beach: The city and contractors with contracts worth more than $100,000 must pay their employees at least $8.56 per hour if they offer health coverage, or $9.81 hourly if they don’t provide health benefits. • Miami/Dade County: County employees, contractors working on contracts in excess of $100,000 and the airport’s ground service personnel must earn $9.81 per hour with health coverage, or $11.82 hourly if they don’t receive health benefits. www.TheHRSpecialist.com/FL Florida’s 9 Most Critical Employment Laws 11 9. Common-Law Protections for Employees n addition to local and state laws, Florida employers must abide by common-law protections afforded to employees: most notably, the right to be free from libel, slander and intentional infliction of emotional distress. Most often, employers land in trouble when a supervisor makes a stupid comment or tries to make an example of an employee. Take, for instance, an employee suspected by a manager of stealing from the petty cash. If that manager calls a staff meeting, announces the “theft” and points out the “guilty” party, the manager better be sure he or she has the facts straight. If not, I © 2007 National Institute of Business Management the employee may be able to win a suit for defamation and intentional infliction of emotional distress under Florida common law. What’s worse, the manager can be held personally liable, too. Another area in which to exercise extreme caution: giving job references. Be sure that any information you give can be verified. Ask if the applicant signed a release and consent form, allowing you to discuss his or her work performance. Obtain a copy. When in doubt, stick with the basics. Name, rank and position held are unlikely to get you into trouble. www.TheHRSpecialist.com/FL 12 National Institute of Business Management Online Resources: Florida Employment Law Agency for Workforce Innovation Minimum wage www.floridajobs.org/ (800) 342-3450 Agency for Workforce Innovation www.floridajobs.org/resources/fl_min_wage .html (888) 717-5577 Web sites: Unemployment compensation Agency for Workforce Innovation www.floridajobs.org/unemployment/index. html (866) 778-7356 To report suspected fraud, go to www .floridajobs.org/Benefits/BPC/fraud.asp. To file claims appeals, go to www.floridajobs .org/appeal Workers’ compensation Child labor rules Bureau of Child Labor Division of Regulation Department of Business and Professional Regulation www.state.fl.us/dbpr/reg/childlabor (850) 488-3131 Clean indoor air (smoke-free workplaces) Florida Department of Health www.doh.state.fl.us/Environment /community/fciaa/index.html Division of Workers’ Compensation Florida Department of Financial Services www.fldfs.com/wc/ (800) 337-3742 (850) 413-3100 Agency for Workforce Innovation www.floridajobs.org/alc/index.html Civil rights Florida Commission on Human Relations http://fchr.state.fl.us/ (850) 488-7082 Work force investment Agency for Workforce Innovation www.floridajobs.org/PDG/wia.html © 2007 National Institute of Business Management Alien labor certification (850) 921-3299 Regional work force boards The Agency for Workforce Innovation partners with 24 regional work force boards to provide assistance to employers and jobseekers. To find the nearest board that serves your location, go to www.workforceflorida .com/wages/wfi/boards/index.htm www.TheHRSpecialist.com/FL
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