Description

Are you prepared for the seismic shifts in HR compliance that Florida businesses will face in 2025? As the landscape of employment law continues to evolve, understanding these upcoming changes is crucial for every business owner. Join us in this insightful episode of The Business Growth Collective, where we dive deep into the critical HR compliance changes that will impact your organization. From the significant minimum wage increase to $14 per hour for non-tipped employees to the complexities of employee classification, we cover it all.

Our hosts engage in a thought-provoking discussion about potential changes to overtime rules and the intricate issues surrounding paid leave in the state. These forthcoming regulations are not just numbers on a page; they represent a shift in how businesses will operate and manage their workforce. Ignoring these changes could lead to severe penalties, so it’s imperative that you stay informed and proactive.

Throughout the episode, we emphasize the importance of assessing your payroll systems and reviewing employee classifications to ensure compliance with both federal and state laws. With the right approach, you can turn these challenges into opportunities for growth and improvement. We also highlight the necessity of fostering a respectful workplace environment, which is essential for maintaining a positive culture amidst changing regulations.

To navigate these upcoming HR compliance changes effectively, we provide actionable advice and resources that every business owner should consider. From consulting with HR experts to utilizing available tools, we equip you with the knowledge you need to prepare for the future. Remember, being proactive in compliance is not just about avoiding penalties; it’s about building a resilient organization that thrives in an evolving landscape.

As we wrap up this episode, we encourage you to take charge of your business’s future by staying informed and engaged with the changes on the horizon. The world of HR compliance is complex, but with the right resources and insights, you can ensure your business not only survives but thrives. Tune in now to gain the knowledge that will empower you and your organization as you prepare for the HR compliance changes ahead!

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Transcription

• Speaker #0

  Welcome back to the Business Growth Collective weekly podcast. You know, joining us at bizgrowthcollective.com can really help you stay in the loop, and it's a great way to connect with other businesses across Florida. Plus, you'll find tons of resources that'll make running your business a lot smoother. Joining's easy peasy, just visit the website or shoot us a quick text. Now, let's dive into a topic I know a lot of you Florida business owners are thinking about, those HR compliance changes coming in 2025. Today, we'll be using this excellent report from AYS Professional Services. It's called... HR compliance changes are coming in 2025. Are Florida businesses ready? We're going to cover everything from those minimum wage increases we keep hearing about to possible shifts in overtime rules. We'll even tackle the confusing world of paid leave and the role of AI in HR. And to guide us through this, we have a true expert here to break it all down. So let's kick things off with something that every business owner in Florida needs to know about. The minimum wage. What can you tell us about the upcoming changes?

• Speaker #1

  Well, you've probably heard that Florida's minimum wage is going up. It's actually set to hit $14 an hour for non-tipped employees on September 30, 2025. This is all part of a multi-year plan that will eventually bring the minimum wage to $15 an hour in 2026.

• Speaker #2

  Okay, so $14 an hour is coming up pretty quickly. I know the federal minimum wage is still much lower at $7.25. Does that even matter for us here in Florida?

• Speaker #1

  Not really. State law wins out in this case, so you absolutely need to comply with the higher Florida minimum wage. Otherwise, you might face some serious penalties. And it's not just about changing hourly rates. This increase could impact your whole payroll system and even lead to some tricky employee reclassification issues.

• Speaker #2

  Reclassification issues. That sounds like a real headache. You mean having to maybe change some employees from salary to hourly based on the new minimum wage? Right.

• Speaker #1

  Exactly. Businesses might have to reevaluate whether certain positions should be salaried or hourly with these new standards. It gets especially complex when you consider tipped employees. They have their own separate calculations based on what's called the tip credit. That's the difference between the regular minimum wage and the tipped minimum wage.

• Speaker #2

  So this minimum wage increase isn't just about changing a number. It could really change how businesses organize their workforce, especially in industries like restaurants and hospitality, where tipped employees are common. What advice would you give a business owner feeling a bit overwhelmed by all of this?

• Speaker #1

  Don't panic. Start by looking closely at your current payroll systems and see if there are any potential problems. Do you have a way to easily update pay rates? Are you sure you understand how to calculate the tip credit? If not, now is the time to talk to an HR expert or a payroll specialist who can help you.

• Speaker #2

  That's some solid advice. I think a lot of business owners want to handle everything themselves. But sometimes it's better to bring in a pro, especially for something as important as staying compliant. OK, so we've talked about the minimum wage increases, but I know there's another big issue causing confusion and even legal battles. Employee classification. It can be really tough to know who's an independent contractor and who's an employee.

• Speaker #1

  You're absolutely right. It's a tricky area that can trip up even experienced business owners. And Florida actually has stricter guidelines than federal law when it comes to independent contractors.

• Speaker #2

  So what's the big deal with misclassifying someone? Why is it so important for business owners to get this right?

• Speaker #1

  Well, imagine this. If you classify an employee as an independent contractor, you're basically avoiding certain legal responsibilities. You're not paying payroll taxes or providing benefits. And you could even face legal action from both the government and the misclassified worker.

• Speaker #2

  I've also heard things are going to get even stricter in 2025, like Florida's really going to crack down on misclassification.

• Speaker #1

  Exactly. There's a lot of talk about increased scrutiny. And maybe even tougher penalties for businesses caught misclassifying workers. So if you're even a little unsure about how someone should be classified, it's really important to talk to an employment lawyer or an HR specialist who can guide you.

• Speaker #2

  So don't just assume you're doing it right. Get a second opinion. Now, let's move on to something else that's always on the minds of business owners over time. Now, there's been a lot of back and forth at the federal level about potential changes to overtime rules. Can you give us an update on that?

• Speaker #1

  Yeah, the Department of Labor. or DOL, has been thinking about raising the salary threshold for overtime exemption. What that means is that some employees who are currently exempt from overtime pay might suddenly become eligible if their salaries are below that new threshold.

• Speaker #2

  OK, so potentially more employees eligible for overtime. That's a big deal for businesses, especially those with a lot of salaried employees close to the current threshold. What should business owners be doing to prepare for this possible change?

• Speaker #1

  Staying informed and being proactive are key. Keep an eye out for any official announcements from the DOL about the new salary threshold once you know the numbers. You can check your workforce and see if you need to reclassify any employees or adjust their salaries to keep them exempt. Remember, the goal is to ensure you're following both federal and Florida law.

• Speaker #2

  So another audit. It seems like you should always be auditing something. Oh. Okay, let's move on to the confusing world of paid leave. Florida's kind of a special case here, right? No statewide paid sick leave, but then you have cities with their own rules. It's like a jigsaw puzzle.

• Speaker #1

  You're exactly right. There's no statewide paid sick leave law in Florida, but cities like Miami have made their own paid leave rules. So if you're in one of those cities, you have to follow those local rules, even if there's no state law. And to make things even more complicated, there's always a chance the Federal Family Medical Leave Act, or FMLA, could change in 2025. We could see expanded leave coverage or more protected time off for employees.

• Speaker #2

  Wow, it sounds like Florida businesses really need to keep up with all these different regulations. For anyone who might not know, can you explain what the FMLA is and why these potential changes are important?

• Speaker #1

  The FMLA is a federal law that gives eligible employees up to 12 weeks of unpaid job-protected leave. This applies to specific family and medical reasons, like having a child or a serious health condition. It's a big deal because it protects employees from losing their jobs when they need to take time off for these important life events.

• Speaker #2

  So any changes to the FMLA could have a big impact on businesses, especially those with employees who qualify for FMLA leave. It's another reminder that staying informed is super important for HR compliance. Now, speaking of creating a workplace where employees feel supported and protected, Let's talk about anti-discrimination. I know there's been some discussion about potential updates to the Florida Civil Rights Act. What's the latest on that?

• Speaker #1

  Right. There's a growing push to update the Florida Civil Rights Act, or FCRA. They want to specifically include gender identity and sexual orientation as protected categories. Right now, it prohibits discrimination based on things like race, religion, and national origin. But these updates would make it more like federal guidelines and offer better protection for LGBTQ plus individuals in the workplace.

• Speaker #2

  So even though anti-harassment training isn't mandatory statewide yet, it sounds like it's a good idea for businesses to stay ahead of the game and create a workplace where everyone feels respected and safe.

• Speaker #1

  Absolutely. It's not just about avoiding legal trouble. It's about creating a positive and inclusive work environment where everyone feels valued and respected.

• Speaker #2

  Well said. We've covered a lot in this first part of our deep dives, from minimum wage increases to employee classification and potential changes in overtime and leave policies. It's clear that Florida businesses have a lot to keep track of in the next few years, but we're not done yet. In part two, we'll get even more practical. We'll discuss specific steps businesses can take to prepare for these HR compliance changes and make sure they're ready for 2025 and beyond. So stick around. We'll be right back. Welcome back. So let's get into some of the practical stuff about these HR compliance changes and what they mean for your business. And remember, we're talking specifically about Florida. So these are things you need to know in the sunshine state.

• Speaker #1

  All right, less theory, more action. What are some things businesses can actually do to get ready for these changes? I like to get things done.

• Speaker #2

  I like that. First things first, mark September 30, 2025 on your calendar. That's when that new minimum wage of $14 an hour for non-tipped employees kicks in here in Florida. Don't get caught off guard. Go ahead and check those payroll systems now and make sure they're ready to handle the changes. Good point. It's easy to forget those important dates when you're running a business. Okay, so we've got payroll systems covered. What's next on our list?

• Speaker #1

  We'll talk about employee classification. This one's tricky, especially with Florida's stricter rules for independent contractors starting in 2025.

• Speaker #2

  You mentioned that Florida is going to be looking more closely at who counts as an independent contractor. Can you explain a bit more about what businesses need to focus on?

• Speaker #1

  It really comes down to control and independence. Florida wants to make sure that people classified as independent contractors are truly calling their own shots. They're going to look at things like how much control the business has over the workers schedule, the tools they use, even how they get paid.

• Speaker #2

  So if a business is micromanaging every little detail of a worker's day, that's a bad sign.

• Speaker #1

  Exactly. The more control the business has, the more it looks like employment instead of a real independent contractor setup.

• Speaker #2

  Okay, so businesses need to review those contracts carefully and make sure everything's clear about the type of relationship. How about those possible changes to federal overtime rules? I bet that's another thing that could catch businesses off guard.

• Speaker #1

  Absolutely. Staying informed is so important here. Keep up with any announcements from the Department of Labor about the new salary threshold for overtime exemption. Once you know the numbers, you can audit your workforce and decide if you need to reclassify anyone or adjust their salaries.

• Speaker #2

  So be proactive and stay ahead of the game. Let's talk about paid leave. It's confusing in Florida, no statewide paid sick leave, but then cities have their own rules. It's complicated.

• Speaker #1

  It is no statewide paid sick leave in Florida, but some cities, like Miami, have their own ordinances and businesses have to follow those. And then there are the possible changes to the federal FMLA. Those could change things too.

• Speaker #2

  It's like a puzzle trying to figure out what applies where. What's your best advice for businesses dealing with this?

• Speaker #1

  Working with an HR expert is like having a guide in this compliance jungle. They can help you figure out all the rules and make sure you're doing everything right.

• Speaker #2

  I like that having an HR expert to help you navigate all the regulations. Makes sense. Now let's talk about something I'm passionate about. Creating a respectful and inclusive workplace. We talked about potential changes to the Florida Civil Rights Act and how important anti-harassment training is. What are some specific things businesses can do to create that positive environment?

• Speaker #1

  Start by looking at your current policies. Are they up to date? Do they reflect the latest legal requirements and best practices? If not, it's time to update them.

• Speaker #2

  Training must be a big part of this too, right? Like it's not enough to just have the policies. Employees need to understand them and know how to follow them in real life.

• Speaker #1

  Exactly. Regular anti-harassment training can make a huge difference. It sets the tone, makes expectations clear, and gives employees the confidence to speak up if they see or experience any problems. It creates a culture where everyone is accountable and respectful.

• Speaker #2

  I like that. It's all about creating a workplace where everyone feels safe, heard, and respected. Okay, let's shift gears to workplace safety. OSHA is serious business.

• Speaker #1

  For sure. And with potentially more scrutiny coming in 2025, it's more important than ever for businesses to prioritize safety.

• Speaker #2

  What should be at the top of a business owner's safety checklist?

• Speaker #1

  Start with a thorough safety audit. Walk through your workplace, look for potential hazards, and make sure you have the right safety procedures in place. Don't forget about ongoing employee training. Make sure they know how to spot hazards, use safety equipment properly, and report any concerns.

• Speaker #2

  So it's about making safety a part of your culture where everyone feels like they can speak up and keep things safe. Now what about data privacy? That's another critical area, especially with the possibility of new laws in Florida.

• Speaker #1

  Data privacy is really important. Businesses have to handle employee data with care and respect. That means having strong security measures in place. like encryption and access controls to protect sensitive information. And being transparent is key. Tell employees what data you're collecting, why you're collecting it, and how you're keeping it safe.

• Speaker #2

  Transparency builds trust and shows employees that you care about their privacy. Speaking of new and exciting things, let's talk about AI and automation in HR. This field is changing so fast, and it's bringing both great opportunities and some challenges.

• Speaker #1

  The potential of AI in HR is pretty amazing. It can streamline processes, make decision-making better, and even help create a more personalized experience for employees. But we also need to be aware of potential problems, especially when it comes to bias and fairness.

• Speaker #2

  You mentioned that the EEOC might create regulations to prevent bias in AI-driven hiring tools. That's a big deal.

• Speaker #1

  It is. Businesses have to make sure they're using AI responsibly and ethically. That means checking those algorithms to ensure they're not biased and being open with candidates about how AI is being used in hiring.

• Speaker #2

  It's about finding that balance between innovation and responsibility. We want to use AI to our advantage, but we need to make sure it's fair for everyone. We've covered a lot today, from practical steps to handle minimum wage increases to safety audits in the world of AI and HR. It's clear Florida businesses need to plan ahead. But the most important takeaway is this. Don't wait until the last minute. Start getting ready now. The more prepared you are, the easier it will be to make these changes.

• Speaker #1

  I totally agree. Planning ahead is key.

• Speaker #2

  We know keeping up with all these changes can be overwhelming. So in our final segment, we're going to share some helpful resources to keep you informed and on top of your HR game in Florida. Welcome back to the final part of our deep dive into those HR compliance changes coming to Florida in 2025. We've covered a lot, minimum wage hikes, AI in the workplace, the whole shebang. But before we wrap up, we want to make sure you've got the tools and resources you need to stay ahead of the curve. So let's talk about where you can go for help when those HR questions pop up.

• Speaker #1

  You know, one of the best things any business owner can do is find a trusted HR expert. Think of them as your partner in navigating all those tricky regulations.

• Speaker #2

  I like that you're an HR partner. So where can businesses find these HR experts? Are we talking consultants, law firms, what?

• Speaker #1

  Well, there are some great organizations right here in Florida that specialize in helping businesses with HR. For example, AYS Employee Leasing has a great track record. They can help businesses with everything from payroll and compliance to staying up to date on those new regulations.

• Speaker #2

  That sounds like a huge help for busy business owners who don't have time to become HR experts themselves.

• Speaker #1

  Exactly. It's often smarter to bring in specialists who really know this stuff rather than trying to do it all yourself and maybe making COPPA mistakes.

• Speaker #2

  Absolutely. Besides working with an expert, are there any other resources you'd recommend? What about those of us who like to do our own research and stay informed?

• Speaker #1

  Of course. Staying informed is crucial, and there are some great resources out there. The Society for Human Resource Management, or SHRM, is fantastic for HR professionals. They offer tons of information, training programs, and even certifications to help you stay on top of things.

• Speaker #2

  It's great for HR folks, but what if you're just starting out or don't have a dedicated HR team yet?

• Speaker #1

  Well, the Internet can be a big help. The U.S. Department of Labor website has a lot of info on federal labor laws. And don't forget the Florida Department of Economic Opportunity website for state specific rules.

• Speaker #2

  So much good info available. Well, we've really covered a lot in this deep dive. We talked about those minimum wage increases, stricter employee classification rules, the possible changes to overtime, paid leave. And of course, we talked about anti-discrimination policies, workplace safety, data privacy and even A.I. and automation in H.R. It's definitely a lot to take in, but here's the most important takeaway. Be proactive. Don't wait until 2025 is here and those changes are in effect. Start planning now. Check your policies and don't hesitate to get expert advice if you need it. Remember, HR compliance is about more than just avoiding fines. It's about building a workplace where your employees feel valued, respected, and safe.

• Speaker #1

  I couldn't agree more.

• Speaker #2

  Now, before we wrap up, I want to leave you with one last thought. We talked about how AI and automation are changing things in HR. Exciting and innovative, but it also brings up some important ethical questions. As we move forward with all this new technology, let's make sure we're using these powerful tools responsibly and thoughtfully. How can we use them to create a fair and more inclusive workplace for everyone? That's something to keep in mind as you explore these technologies. Well, that brings us to the end of our deep dive. A huge thank you to our expert for guiding us through this complex topic. And to all of you listening, remember that knowledge is power. Stay informed. Stay proactive and keep building amazing businesses here in Florida. And before you go, head over to bizgrowthcollective.com. Joining our community is like having a whole support system for your business. Plus, you get access to exclusive resources and can connect with other great businesses across Florida. So join the collective. Until next time, stay curious, stay compliant, and keep those entrepreneurial dreams alive.