HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/CS/HB 433 Employment Regulations
SPONSOR(S): Commerce Committee, Regulatory Reform & Economic Development Subcommittee,
Esposito
TIED BILLS: IDEN./SIM. BILLS: CS/SB 1492
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Regulatory Reform & Economic Development 9 Y, 4 N Thompson Anstead
Subcommittee
2) State Affairs Committee 14 Y, 6 N Mwakyanjala Williamson
3) Commerce Committee 14 Y, 4 N, As CS Thompson Hamon
SUMMARY ANALYSIS
The federal Fair Labor Standards Act (FLSA) provides workers with minimum wage, overtime pay, record
keeping, and child labor protections for full and part-time workers in both the public and private sectors. The
FLSA allows states to expand the rights of employers and employees. Florida generally follows federal law on
overtime pay and occupational health and safety.
The Florida Minimum Wage Act, enacted in 2005, implements the minimum wage provisions in the State
Constitution. Florida’s wage and employment benefits law preempts the establishment of a minimum wage to
the state. Thus, local governments cannot establish a minimum wage for private employers in their jurisdiction.
Local governments are also prohibited from requiring private employers to provide employment benefits not
required by state or federal law. However, local governments have limited authority to establish a minimum
wage and to require specific employment benefits for their own employees and those of their vendors or
contractors.
The Occupational Safety and Health Act of 1970 is the federal labor law governing occupational health and
safety in the private sector and federal government. Currently, there are no specific federal or state laws that
provide heat exposure protections for outdoor workers.
The bill:
 Prohibits local governments from preferring one contractor over another based on the wages or
employment benefits provided by the contractor.
 Removes the ability of local governments to require a minimum wage for certain employees under the
terms of a contract.
 Expressly preempts the regulation of the terms and conditions of employment to the state, and allows
local governments to provide certain employment benefits for the employees of the local government
that exceed state or federal law.
 Preempts the regulation of workplace heat exposure requirements to the state.
 Clarifies that the preemption of workplace heat requirements does not limit the authority of a local
government to provide workplace heat exposure requirements for the employees of the local
government, and does not apply if compliance will prevent the local government from receiving federal
funds.
The bill does not appear to have a fiscal impact on state or local government.
The effective date of the bill is July 1, 2024.
This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives .
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 FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Current Situation
Fair Labor Standards Act
The federal Fair Labor Standards Act (FLSA), enacted in 1938, provides covered workers with
minimum wage, overtime pay, and child labor protections. 1 In 1938, the FLSA established a minimum
wage of $.25 an hour. The current federal minimum wage rate is $7.25 an hour, which went into effect
July 24, 2009. The FLSA applies to employment within any state in the U.S., the District of Columbia, or
any territory or possession of the U.S.2
The FLSA covers most private and public sector employees. However, certain employers and
employees are exempt from coverage, including individuals with disabilities, youth workers, tipped
workers, and executive, administrative, and professional workers. The FLSA covers businesses if the
business has annual sales of at least $500,000. 3 It also covers certain individual employees if such
employee is engaged in interstate commerce.
The FLSA applies to all:4
 Governments: Federal, state, or local government agencies.
 Hospitals: Hospitals, or institutions primarily engaged in the care of the sick, the aged, or the
mentally ill or disabled who live on the premises. It does not matter if the hospital or institution is
public or private or is operated for profit or not-for-profit.
 Schools: Pre-schools, elementary or secondary schools or institutions of higher learning (e.g.,
college), or a school for mentally or physically handicapped or gifted children. It does not matter
if the school or institution is public or private or operated for profit or not-for-profit.
The FLSA includes several exemptions from the federal minimum wage provisions, including:5
 Executive, administrative, and professional employees.
 Employees in certain seasonal amusement or recreational establishments, employees in certain
small newspapers, seamen employed on foreign vessels, employees engaged in fishing
operations, and employees engaged in newspaper delivery.
 Farm workers employed by certain employers.
 Casual babysitters and persons employed as companions for the elderly or infirm.
 Border patrol agents.6
 Baseball players who are compensated pursuant to a contract that provides for a weekly salary
for services performed during the league’s championship season at a rate that is not less than a
weekly salary equal to the minimum wage.
The FLSA was amended in 2014, concerning border patrol agents, and again in 2018, to exempt minor
league baseball players who are paid at least $290 per week during the 2018 championship season
1 29 U.S.C. § 201-219 and 29 C.F.R. ch. V.
2 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview,
https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Dec. 5, 2023). (The main FLSA provisions and accompanying
Department of Labor (DOL) regulations constitute what is commonly known as federal wage and hour laws and federal child labor
law.).
3 The size of an enterprise is measured by its “annual sales or business done.” Annual sales or business done includes all business
activities that can be measured in dollars. Thus, retailers are covered by the FLSA if their annual sales are at least $500,000. Owners
of rental properties are covered if they collect at least $500,000 annually in rent. 29 C.F.R.§§779.258-779.259.
4 U.S. Department of Labor, Fair Labor Standards Act Advisor, https://webapps.dol.gov/elaws/whd/flsa/scope/screen10.asp, (last
visited Dec. 5, 2023).
5 29 U.S.C. § 213. (It also includes separate exemptions from overtime pay.)
6 See Border Patrol Agent Pay Reform Act of 2014, S.1691, 113th Cong, (2014).
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 from the federal minimum wage rate and overtime pay.7 These two amendments were the only
amendments made to the minimum wage exemptions provisions of the FLSA since Florida passed its
minimum wage law in 2005.8
The FLSA provides that if states enact worker protections, including minimum wage rates, that are
more protective of employees than what is provided by the FLSA, the state law applies.9 Consequently,
no state law may weaken the worker protections in the FLSA. However, state laws that impose greater
worker protections will supersede those in the FLSA.10
Thirty states plus Washington DC, Guam, Puerto Rico, and the Virgin Islands provide a minimum wage
greater than the federal minimum wage. Thirteen states provide a minimum wage that is equal to the
federal minimum wage. Five states have not adopted a minimum wage and two states have a minimum
wage that is below the federal minimum wage.11 For those seven states, the federal minimum wage
applies, but only to those workers covered by the FLSA.
Article X, Section 24 of the Florida Constitution
On November 2, 2004, Floridians voted to amend the Florida Constitution by adding a minimum wage
provision (Section 24) that established the state minimum wage. 12 Prior to this date, Florida did not
have a state minimum wage so the FLSA applied for covered workers. Section 24 provides the amount
of the minimum wage and the procedure for calculating increases in the minimum wage. 13 The
amendment also provides that “all working Floridians are entitled to be paid a minimum wage sufficient
to provide a decent and healthy life, that protects their employers from unfair low wage competition,
and that does not force them to rely on taxpayer-funded public services.”14
On November 3, 2020, Florida voters again approved a constitutional amendment related to the state’s
minimum wage, Amendment 2, to gradually increase the state’s minimum wage to $15 an hour by the
year 2026.15 Pursuant to the passage of Amendment 2, on September 30, 2021, Florida’s minimum
wage increased to $10 per hour. Each year, thereafter, Florida’s minimum wage will increase by $1
until the minimum wage reaches $15 per hour on September 30, 2026.16 Beginning in 2027, the
minimum wage will be adjusted annually for inflation, as it had been done from 2004 to 2021.
7 See Levi Weaver, On Minor-League Pay, MLB’s Stance Doesn’t Line Up with the Facts, The Athletic (Apr. 4, 2018),
https://www.theathletic.com/293189/%202018/04/04/on-minor-league-pay-mlbs-stance-doesnt-line-up-with-the-facts// (last visited
Dec. 5, 2023). (When recounting salary scale per level of minor league baseball, the article notes “federally -recognized poverty line is
$12,140 per year for single-individual households.” According to the article, a not-insignificant percentage of minor league players are
able to subsidize their relatively meager monthly salaries by drawing upon the signing bonuses they received from their MLB c lubs
when first entering the professional ranks. These bonuses can range anywhere from $10,000 to several million dollars. “The top 64
picks [in the MLB draft] last year all received a bonus of over $1,000,000 before taxes, but roughly 40% of players signed for one-
time bonuses of $10,000 or less.”
8 S. 448.110, F.S., expressly references ss. 213 and 214 of the FLSA, which address minimum wage exemptions and employment
under special certificates, respectively. However, s. 214 has not been amended since 1989. (See Pub. L. 101–157, § 4(d), Nov. 17,
1989, 103 Stat. 941).
9 29 U.S.C. §218.
10 Congressional Research Service, CRS Report R42713, The Fair Labor Standards Act (FLSA): An Overview, Updated March 8,
2023, https://crsreports.congress.gov/product/pdf/R/R42713, (last visited Dec. 5, 2023).
11 U.S. Department of Labor, Consolidated Minimum Wage Table, https://www.dol.gov/agencies/whd/mw-consolidated (last visited
Dec. 5, 2023).
12 Art. X, s. 24, Fla. Const.
13 Art. X, s. 24(c), Fla. Const.
14 Art. X, s. 24(a), Fla. Const.
15 U.S. Department of State, Notice of Increase to State of Florida’s Minimum Wage, https://www.state.gov/wp-
content/uploads/2021/01/2021-01-29-Notice-FL-M inimu m-Wage-Increase.pdf (last visited Dec. 5, 2023).
16 Department of Economic Opportunity, Florida’s Minimum Wage, https://floridajobs.org/docs/default-source/business-growth-and-
partnerships/for-employers/posters-and-required-notices/2022-minimum-wage/2022-florida-minimu m-wage-
announcement.pdf?sfvrsn=961754b0_2 (last visited Dec. 5, 2023).
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 The Florida Constitution references the FLSA and specifically ties the meaning 17 of “employer,”
“employee,” and “wage,” to the meanings established under the FLSA and its implementing
regulations.18 It also indicates that case law, administrative interpretations, and other guiding standards
developed under the federal FLSA must guide the construction of Florida’s Constitution related to
Section 24 and any implementing statutes or regulations. 19
Florida Minimum Wage Act
The Florida Minimum Wage Act (Act) was enacted in 2005 to implement the minimum wage provisions
in the Florida Constitution.20 The Act designates the Department of Commerce (DC) as the state
agency that implements the minimum wage requirements, establishes procedures with respect to civil
actions alleging violations, and provides that it is the exclusive remedy under state law for violations of
Section 24.21
The Act provides that, effective May 2, 2005, employers are required to pay employees a minimum
wage at an hourly rate of $6.15 for all hours worked in Florida. Only those individuals entitled to receive
the federal minimum wage under the FLSA and its implementing regulations are eligible to receive the
state minimum wage pursuant to the Florida Constitution and this statute. The provisions of ss. 213 and
214 of the federal FLSA, as interpreted by applicable federal regulations and implemented by the
Secretary of Labor, are incorporated by reference.22
Local Wage Ordinances
The Florida Constitution authorizes counties to enact ordinances that are not inconsistent with state
law,23 while municipalities are authorized to enact ordinances on any subject that state law may
address, except:24
 The subjects of annexation, merger, and exercise of extraterritorial power;
 Any subject expressly prohibited by the Florida Constitution;
 Any subject expressly preempted to state or county government by the Florida Constitution or
by law; or
 Any subject preempted to a county under a county charter.
In 2003, the Legislature preempted the establishment of minimum wages to the state. 25 However, a
political subdivision (local government) 26 retains the authority to establish a minimum wage other than a
state or federal minimum wage or to provide employment benefits not otherwise required under state or
federal law for:27
 Its employees;
 The employees of an employer contracting to provide goods or services for the local
government, or for the employees of a subcontractor of such an employer, under the terms of a
contract with the local government; or
17 In re Advisory Opinion to the Atty. Gen. re Fla. Minimum Wage Amend ., 880 So. 2d 636, 641–42 (Fla. 2004). (“The proposed
amendment does not state that it is adopting the FLSA's definition of the term “employee,” but provides that it is adopting the meaning
of the term “employee,” which is a much broader concept.”)
18 Art. X, s. 24(b), Fla. Const.
19 Art. X, s. 24(f), Fla. Const.
20 Ch. 2005-353, Laws of Fla., codified in s. 448.110, F.S.
21 S. 448.110(10), F.S. HB 5 (2023) renames the Department of Economic Oppo rtunity as the Department of Commerce; SB 82
(2024), section 220, makes this conforming change in the Florida Minimum Wage Act.
22 S. 448.110(3), F.S.
23 S. 1(f) and (g), Art. VIII, Fla. Const.; see also s. 125.01, F.S.
24 S. 2(b), Art. VIII, Fla. Const.
25 S. 218.077(2), F.S. See s. 18(a) of the federal Fair Labor Standards Act of 1938, as amended, 29 U.S.C. s. 218:
No provision of [the Fair Labor Standards Act] or of any order thereunder shall excuse noncompliance with any Federal or Stat e law
or municipal ordinance establishing a minimum wage higher than the minimum wage established under [the federal act].
26 “Political subdivision” is defined to mean a county, municipality, department, commission, district, board, or other public b ody,
whether corporate or otherwise, created by or under state law. S. 218.077(1)(f), F.S.
27 S. 218.077(3)(a), F.S.
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  The employees of an employer receiving a direct tax abatement or subsidy from the local
government, as a condition of the direct tax abatement or subsidy.
The preemption also does not apply to “a domestic violence or sexual abuse ordinance, order, rule, or
policy adopted by a political subdivision.”28
The law contains an exception for situations where compliance would prevent a local government from
receiving federal funds. This allows compliance with the Davis-Bacon and related acts,29 which direct
the federal Department of Labor to determine fair wages for contractors and subcontractors working on
public buildings and public works. Florida law only allows non-compliance with regard to local minimum
wage alterations to the extent necessary to allow receipt of federal funds. 30
Additionally, local governments are prohibited from requiring an employer to provide employment
benefits 31 not required by state or federal law. “
Despite these provisions, in 2016, the City of Miami Beach enacted a local ordinance establishing a
minimum hourly wage significantly exceeding the current Florida minimum wage. The ordinance
applied to all employers operating within the city. The ordinance, which was scheduled to take effect on
January 1, 2018, established both a local minimum wage of $10.31 an hour and annual increases to
$13.31 an hour effective January 2021. Subsequently, the ordinance was challenged o