Companies that hire employees have various legal compliance obligations under employment law. However, Florida businesses may make critical mistakes under state and federal employment laws that can expose the company to catastrophic litigation from prospective, current, or former employees. Here are some of the most common kinds of employment law claims Florida employers can face.
Misclassifying Employees and Independent Contractors
Workers may file lawsuits alleging that companies have misclassified them as independent contractors. The law presumes that workers qualify as employees, unless a business can demonstrate that a worker qualifies as an independent contractor under various legal tests by agencies such as the IRS, the U.S. Department of Labor, and state labor and revenue agencies.
Misclassifying workers under the employee vs. independent contractor scheme may result in liability under minimum wage, overtime, workers’ compensation, and payroll tax laws. When businesses employ a company-wide policy that misclassifies workers, they may face liability under a class or collective action.
Failing to Pay Overtime and Minimum Wage
A Florida business can face litigation for failing to appropriately compensate workers under state and federal wage and hour laws. For example, companies may fail to pay workers minimum wage, which in Florida will increase to $15 per hour starting on September 30, 2026. Minimum wage violations may occur when employers take improper tip credits or when they pay hourly workers flat weekly or monthly pay that does not equate to minimum wage based on the number of hours employees work.
Employers must also compensate non-exempt employees at time-and-a-half for all time worked over 40 hours in a workweek. Uncompensated overtime can occur when businesses require employees to perform work before or after clocking in or to answer work emails off the clock.
Violating Anti-Discrimination and Harassment Laws
State and federal law prohibit discrimination or harassment of workers based on protected characteristics such as:
- Race
- Color
- National origin
- Religion
- Sex
- Sexual orientation
- Age (over 40)
- Disability
- Pregnancy
- Genetic information
Employers may face liability under discrimination or harassment lawsuits by failing to adopt policies that prevent discriminatory treatment of workers, failing to train supervisors on avoiding discriminatory or harassing behavior, and failing to investigate worker complaints.
Mishandling Employee Terminations
As an at-will state, Florida allows businesses to terminate at-will workers at any time and for any reason, including no reason at all, provided the employer does not terminate a worker for a discriminatory or retaliatory reason. A discriminatory termination may involve targeting workers based on protected characteristics. Retaliatory terminations may occur when workers request disability accommodations, protected leave, or workers’ compensation benefits, or when a worker engages in protected whistleblowing activity.
Employers may face a wrongful termination claim even for a legitimate termination if they fail to document a worker’s performance or behavioral issues that result in their termination. Furthermore, employers face a risk of litigation if they do not have consistent policies and procedures for disciplining and terminating workers for misconduct or poor performance.
Overlooking Employment Policies and Documentation
Florida businesses can also face litigation for other mistakes, such as failing to make required job postings before filling positions, not having employee handbooks that document company policies, and not keeping mandatory records like employee timesheets. Outdated or inadequate company policies can undermine a business’s defense in an employment lawsuit, which makes it critical for companies to review and update employment documents and policies regularly.
Contact an Employment Law Attorney Today
Being mindful of potential violations of employment law during the hiring process can help you avoid future litigation that can cost your company time, money, and reputation. Contact Brick Business Law, P.A., today for a free, no-obligation consultation with an employment law attorney to learn more about the potential legal pitfalls your business may face under Florida or federal employment law.
