The 5 Costly Mistakes Florida Employers Make (and What Changes in 2026)

Plain-English, Florida-specific HR/Compliance guidance you can paste on your website. This is general info—not legal advice.

1) Underbudgeting 2025–2026 wage & benefit changes

What’s happening

• Florida minimum wage steps up again to $14.00/hr on Sept. 30, 2025 and $15.00/hr on Sept. 30, 2026 (tipped cash wage = full minimum minus $3.02 tip credit). That means $10.98/hr cash wage for tipped employees starting Sept. 30, 2025, and $11.98/hr on Sept. 30, 2026. Florida Jobs+2FRLA+2
• ACA affordability gets stricter: the employer plan affordability threshold rose to 9.78% of household income for 2025 and 9.96% for 2026, which can force premium reductions or higher employer contributions to remain compliant. DOL
• SECURE 2.0: catch-up contributions for employees earning >$145,000 must be Roth-only starting Jan. 1, 2026 (with good-faith transition relief into 2027). HR/Payroll and plan documents need updates in 2025. IRS+2Federal Register+2
• Florida reemployment tax (state UI): wage base remains $7,000; 2025 rates range from 0.1% ($7/employee) to 5.4% ($378/employee); new employers usually start at 2.7%. Florida Dept. of Revenue+2Florida Dept. of Revenue+2

Quick budget math (example): each $1.00/hr increase ≈ $2,080/FTE per year (2,080 hrs). A team of 25 FTEs sees ≈ $52,000 more in wage expense when Florida moves from $14 → $15 on Sept. 30, 2026 (not counting taxes/benefits).

What to do:

• Lock a two-step wage plan now (9/30/2025 and 9/30/2026), update tip policies/posters, and set ACA affordability payroll deductions for the plan year.
• Coordinate with your 401(k) recordkeeper to implement Roth catch-up logic and participant notices for 2026. IRS

2) Treating federal wage-hour rules as “set it and forget it”

Overtime (exempt salary threshold): The 2024 DOL rule to raise exempt salary thresholds was blocked/vacated by multiple federal courts in late 2024; the government appealed in 2025. Practically, many employers have reverted to the 2019 level ($684/week) pending final outcomes. Don’t assume the higher numbers are enforceable today—track developments and document your decisioning. Independent contractor test: DOL’s March 2024 rule (economic-realities test) is complex, and while DOL paused enforcement as of Aug. 1, 2025, private litigation risk remains; misclassification still triggers back wages and taxes. Use a consistent, factor-based review. Federal Register

What to do:

• Re-validate exemption status (duties + current salary) and keep a file memo on your rationale given the litigation landscape.
• Run a contractor audit against the economic-realities factors; adjust agreements and timekeeping accordingly. Federal Register

3) Cutting corners on hiring compliance: Florida E-Verify + federal I-9 (remote option)

Florida E-Verify (private employers with 25+ employees): You must use E-Verify for all new hires and keep proof. Repeat violations can trigger license suspensions (30–60–180 days) and civil fines up to $1,000/day, especially for continued noncompliance. My Florida License+1Remote I-9 is permanent (for qualified employers): If you’re in E-Verify and in good standing, you may use DHS’s Alternative Procedure to examine documents over video, check anti-discrimination consistency, and retain clear copies. Be sure you’re on the 08/01/23 Form I-9. USCIS+2USCIS+2 Penalties to know: Paperwork and hiring-unauthorized-worker fines were inflation-adjusted upward in 2025; errors can cost thousands per worker. Build an internal I-9 audit cadence. The Florida Senate

What to do:

• Add an E-Verify + I-9 checklist to every new-hire packet; standardize the remote exam workflow if you use it.
• Keep I-9 audit trails and document retention policies tight (policy + training + periodic spot checks). USCIS

4) Assuming local ordinances drive your safety rules (they don’t anymore)

Florida preemption (HB 433, effective July 1, 2024): Cities/counties cannot mandate higher local minimum wages, predictive scheduling rules, or heat-exposure standards for private employers. You must look to state/federal requirements—but OSHA’s general duty clause still applies, and heat stress penalties can be significant. Florida House of Representatives+1

Why this matters: Even without local mandates, a serious OSHA citation can reach $16,131 per violation (2025), and repeat/willful violations up to $161,323—and heat illness remains a top enforcement focus. Create your own water-rest-shade policy for summer. Akerman LLP

What to do:

• Implement a written heat-illness prevention plan (acclimatization, cool-down breaks, water logistics, supervisor training).
• Use work-rest schedules and incident logs to demonstrate due diligence in the event of an inspection. The Florida Senate

5) Overlooking sector-specific and youth-labor requirements

Lodging & hospitality: mandatory human-trafficking training. Florida Statute §509.096 requires covered lodging properties to provide annual training (DBPR-approved), maintain acknowledgments, and post signage. Noncompliance is $2,000 per day (stricter since July 1, 2023). Online Sunshine 

Teen scheduling changed in 2024 (HB 49). Florida eased some limits for 16–17-year-olds (e.g., longer hours on Sundays/holidays even if school the next day; waivers up to 40 hrs/wk), but kept strict rules when school is in session, and added required 30-minute meal breaks for longer shifts. Double-check your templates before posting teen shifts. My Florida License+1

What to do:

• If you operate lodging or contract with hotels, calendar annual DBPR training, keep sign-in sheets/acknowledgments, and verify the required poster.
• Update scheduling systems for minor employees and retain waivers where applicable. My Florida License

2026 Watchlist (plan now)

• Florida minimum wage hits $15/hr on Sept. 30, 2026 (tipped cash wage $11.98). Update budgets, menus/price sheets, and service-charge language. Florida Jobs
• SECURE 2.0 Roth catch-up applies Jan. 1, 2026 (good-faith relief into 2027). Coordinate with payroll and your recordkeeper. IRS

Florida-specific FAQs we’re hearing (2025)

Is recreational marijuana protected in Florida now? No. The 2024 adult-use amendment failed to reach 60%, so only the medical program remains; employers can generally keep drug-free policies (watch disability accommodation issues separately).Are non-competes banned? No. Florida still enforces reasonable restrictive covenants; in 2025 the Legislature passed the CHOICE Act (effective July 1, 2025) addressing noncompete enforceability for certain high-paid roles—review templates, especially for multi-state teams. The Florida Senate

A simple compliance checklist you can use this quarter

1. Wages & posters – Update Florida minimum-wage posters and tipped policies for 9/30/2025; pre-budget for 9/30/2026. Florida Jobs
2. Health & retirement – Confirm 2025–2026 ACA affordability and implement Roth catch-up changes for 2026 with your plan administrator. DOL+1
3. E-Verify/I-9 – Verify E-Verify enrollment (25+ employees), standardize the remote I-9 process, and schedule an internal I-9 audit. My Florida License+1
4. Wage-hour – Re-assess exempt classifications in light of the overtime-rule litigation and tighten independent-contractor criteria. Federal Register
5. Safety & sector rules – Adopt a heat policy and ensure lodging-sector trafficking training and postings are current. The Florida Senate+1
6. Payroll taxes – Confirm your 2025 reemployment tax rate (0.1%–5.4% on first $7,000) and budget per-employee costs. Florida Dept. of Revenue

Financial snapshot (helpful when you brief Finance)

• Minimum wage jump (Sept. 30, 2026): +$1/hr ≈ $2,080 per FTE/year (2,080 hrs). Multiply by your baseline FTEs to estimate impact.
• Reemployment tax: $7–$378 per employee per year at the 2025 min/max rates (on the first $7,000 of wages). New employers generally start at 2.7%. Florida Dept. of Revenue+1
• OSHA penalty exposure: up to $16,131 (serious) and $161,323 (repeat/willful) per violation. Akerman LLP

Sources (selected)

Florida minimum wage/tip credit & posters; FL Dept. of Commerce/FRLA; FL Constitution; ACA affordability; SECURE 2.0 final regs; E-Verify law & penalties; I-9 remote procedure; I-9/OSHA penalties; FL HB 433 preemption; Lodging human-trafficking training; FL child-labor updates; Reemployment tax rates/wage base; Recreational marijuana amendment results; FL noncompete CHOICE Act. The Florida Senate+19Florida Jobs+19FRLA+19