In a tight-knit community like Wilton Manors and Greater Fort Lauderdale, there is a nearly-continuous flow of businesses opening and closing, others expanding and contracting.

From the largest Drive nightclub to the most quaint—read: not large—lunch eatery, most of these establishments, along with the boutiques, galleries, real estate offices, law firms, and snack shops that dot the Gayborhood’s ‘main drag, most of these are small businesses in the eyes of the law.

As reported in the Agenda, the number of new businesses opening in Wilton Manors (including on the North Dixie Highway side), as well as the continued growth in Oakland Park and elsewhere in Greater Fort Lauderdale creates both opportunities and exposure for small businesspersons.

Josh Bloom, Esq. is an attorney with the Fort Lauderdale-based Law Firm of Lubell and Rosen, working with businesses to ensure their compliance with employment law.

What legislation governs wages and overtime in Florida?

The Fair Labor Standards Act (FLSA) is federal legislation that was passed in 1938, its purpose to regulate wages and work hours for employees. The focus of FLSA is the establishment of a minimum wage, as well as payment for overtime, recordkeeping requirements for employers, and child labor regulations.

It is considered a landmark law for the socio-economic development of the modern U.S., and all 50 states, including Florida, are covered under FLSA.

What are some of the important wage requirements of which employers need to be aware?

FLSA requires that employers must pay their employees at least the federal minimum wage. The minimum wage in Florida is $7.25 since 2010. Some states have a higher minimum wage than the federal wage, but here in Florida, the minimum wage always matches the federal minimum wage.

Under the minimum wage rules of FLSA, employers are barred from paying one gender more than the other for equal work. The exception is if the business operates under a seniority system or a merit system, or if wages are based on the quality of work.

Any wages that are taken out of an employee’s paycheck for deductions, or any penalties or fines can’t lower hourly wage to less than the minimum wage.

What are some other situations that are covered under FLSA that directly impact small businesses?

Unpaid overtime. Some businesses aren’t aware that they are in violation of the law if they don’t pay overtime, and that they are also responsible for legal costs if any employee sues for unpaid overtime. This can translate into a major expense for a business that isn’t in compliance.

This is an ongoing process, right—a journey for a business, rather than a destination?

The legal landscape can be treacherous for a smaller business that has grown from a one or two to 15, 18, 20 employees, and finds—or doesn’t find, until it’s too late—that they are under the governance of FLSA and other regulations.

A business also needs to be aware of the existence of anti-discrimination laws, such as the Broward Human Rights Ordinance, which can impact hiring and firing practices.

Besides an attorney, in terms of compliance and other necessities, what else does a business need?

It’s important for a business to have reliable support. This could include an accountant who can maximize all of your business expenses and deductions. This might also entail hiring a payroll company, and taking advantage of new media and support technologies. Depending on the size of your business, you may want to have more than one attorney, such as if you have investors, in which instance you may want to consult with an attorney who specializes in SEC (Securities and Exchange Commission) rules.

Something else that bears mentioning: Year ago, when Steve Forbes was running for President, he was asked, “Since you have so much money, if you’re elected President, will you forego collecting a salary?” And he said, “No, of course not. I believe that if you work, you should get paid.”

Let’s say that you work for a covered entity, a business that might be right here on the Drive, and you happen to be friends with the owner. If they ask you to come in and work to help set up a special event, or help cover part of someone’s shift on a Saturday, you could be entitled to overtime.

There are a lot of businesses with employees who are compensated by tips. How does that affect a business’ compliance with FLSA and other regulations?

The law provides other considerations for businesses in service industries where the employees are tipped. Another case is where employees receive commissions as part or all of their wages. Does the business consider that a bonus or compensation? When and how is it earned? If you leave the business’ employment, are you entitled to that last check? That may be a question that is best asked to a jury.

What does the law say and what do legal precedents say about what is customary in that industry? It’s a question of fact.

Any other “CYA” advice?

Even if you’re using some of the pre-packaged legal documents that are available online or in office supply stores, this isn’t a substitution to sound legal counsel. “Cutting and pasting” is fine, unless you’re cutting and pasting away your rights.

An attorney can see an agreement and understand the finer points, which can mean the difference between life and death for a business, especially in still-challenging times. And both businesses and their employees need to know their rights, and what they’re protected against.