Florida Employment Law: What Businesses Need to Know for 2026

As part of our legal advice series, Regina M. Campbell, Esq., Managing Partner of The Campbell Law Group P.A. (TCLG), offers practical insight into key employment law issues affecting Florida businesses. She outlines major developments heading into 2026, including wage increases, overtime compliance, and the growing use of AI in the workplace. Read on and learn how proactive legal guidance can help employers reduce risk and plan effectively.

Image source Depositphotos.

Miami Living: What are the most significant employment law updates impacting Florida businesses in 2026?

Regina M. Campbell: In our work with Florida employers, one of the biggest updates heading into 2026 is the final scheduled increase in the state’s minimum wage. On September 30, 2026, Florida’s minimum wage is set to rise to $15.00 per hour for non-tipped employees under the voter-approved constitutional amendment. For many businesses, this is far more than a simple payroll change. It calls for careful budgeting, updated payroll practices, and a full review of compensation planning.

We have seen how quickly wage issues can escalate when employers fall behind. Claims under the Florida Minimum Wage Act can involve back pay, liquidated damages, and attorneys’ fees, and intentional violations may also trigger civil penalties. For organizations with large hourly workforces or tight margins, those exposures can become costly in a very short period of time.

Beyond wage updates, employers should also pay attention to the compliance side of onboarding and verification. Noncompliance can lead to fines, increased scrutiny, and, in some industries, even licensing consequences. Businesses benefit from documented onboarding procedures and dependable vendor systems that consistently capture and retain verification steps.

We are also watching developments, such as the 2025 CHOICE Act, particularly those education-related provisions that may influence employer obligations and workforce planning in the coming year.

Miami Living: How should employers prepare for evolving federal overtime and wage regulations?

Regina M. Campbell: Federal overtime and wage rules continue to shift and, in our experience, the businesses that do best are the ones that treat compliance as an ongoing process, not a one-time project. That starts with having the right guidance in place. Many employers benefit from working with trusted legal advisors—whether outside employment counsel or in-house general counsel—so that they receive steady updates as rules and interpretations evolve.

From an operational standpoint, we often recommend building and maintaining a clear internal list of employees who regularly work overtime, along with periodic classification audits to confirm who is truly exempt and who is non-exempt. Job titles alone are not enough. Employers need to review job duties, salary levels, and hours worked to reduce misclassification risk, as the Department of Labor’s guidance and enforcement priorities change, including potential shifts in salary thresholds.

Timekeeping is another common source of preventable risk. Employers should upgrade systems and processes to capture all hours worked, including remote work, training, travel time, when applicable, and small pre- and post-shift tasks that can easily be overlooked. Payroll systems should also correctly and consistently calculate and report overtime premiums.

We also encourage regular updates to written policies and handbooks to reflect current federal standards on work time, overtime approval, and off-the-clock prohibitions. Just as importantly, managers and HR teams should be trained periodically on overtime rules, documentation requirements, and how to respond to employee questions consistently.

Finally, employers should monitor developments from the Department of Labor, the IRS, and Florida courts— including opinion letters and wage-related reporting issues—and schedule periodic check-ins with employment counsel so they can adjust their practices before any changes to the laws take effect.

Miami Living: What legal risks are emerging from AI-driven hiring, monitoring, and workforce analytics tools?

Regina M. Campbell: We are seeing more Florida companies adopt AI tools for hiring, employee monitoring, and workforce analytics. While these tools can improve efficiency, they also introduce new legal risks that leadership teams should take seriously.

A major concern is the lack of human oversight. When businesses rely on AI to screen applicants, flag performance issues, or guide employment decisions without meaningful review, they increase exposure to discrimination claims, privacy concerns, and regulatory scrutiny. We are also seeing situations in which people simply accept the tool’s output without questioning the outcome, even when the decision does not line up with what a reasonable person would conclude.

Vendor relationships add another layer of risk. Contracting with an AI provider does not transfer responsibility to the vendor. In fact, using third-party tools can increase litigation exposure if rights and duties are assigned without a clear accountability structure. Without careful due diligence and well-drafted agreements, businesses may find themselves defending decisions tied to flawed systems, poor data inputs, or inadequate oversight, often at significant cost.

We also caution clients not to underestimate the broader legal environment around AI. Courts and regulators are paying closer attention to how AI is used, and the consequences for misuse can be serious. In some contexts, professionals have even faced court sanctions for improper reliance on AI-generated work. For employers, the takeaway is simple: AI can support decision-making, but leadership still owns the outcome. Thoughtful implementation, documented review processes, and ongoing monitoring are essential.

Photo/Sofia Rivas

Miami Living: How can companies reduce exposure to wage and hour claims and collective actions?

Regina M. Campbell: Wage and hour matters remain among the most common sources of employment disputes, and when they develop into collective actions, exposure can grow quickly.

In our experience, prevention starts with time tracking. Employers should implement reliable clock-in and clock-out procedures and require employees to record all hours worked accurately. Policies should also spell out expectations for breaks, overtime approval, remote work, and after-hours communications.

Recordkeeping is equally important. Employers should maintain detailed, up-to-date records of hours worked, wages paid, classifications, and break practices. Strong documentation can discourage claims and provide meaningful defenses if a dispute arises. We have seen situations where the lack of records created unnecessary vulnerability even when the employer believed it was paying employees properly.

We also recommend reviewing pay practices to confirm employees are paid for all compensable time at the correct regular and overtime rates. That includes time that can slip through the cracks, such as training, certain travel time, remote work, and after-hours emails or messages that effectively require employees to work off the clock.

Finally, employers should create internal channels for employees to raise concerns about pay or scheduling without fear of retaliation. When businesses respond early—by correcting errors, paying back wages when appropriate, or updating policies—issues are far less likely to turn into group claims.

Miami Living: What are the most common mistakes employers make when classifying workers as independent contractors?

Regina M. Campbell: Misclassification remains a major risk area, especially as remote and flexible work becomes more common.

One of the most frequent mistakes we see is assuming that working from home, part-time schedules, or flexible hours automatically signal independent contractor status. In reality, classification turns on factors such as who directs the work, who bears risk, and how integrated the role is within the business.

Another issue is documentation. Employers sometimes fail to properly document contractor work and hours, which can become a major problem if the relationship is later challenged. We also see businesses use remote engagements to bypass payroll and benefits systems without fully evaluating whether the arrangement still meets contractor standards under the law.

Classification should also be revisited over time. A business may categorize someone as a 1099 worker during onboarding and never revisit that decision, even as the scope and duration of the work expand. Short-term projects can turn into long-term, employee-like roles, and managers may gradually increase control and responsibilities for convenience—often without legal review—until the relationship clearly resembles employment in hindsight.

The best approach is to document classification decisions, revisit them periodically, and seek guidance before work arrangements evolve into something riskier than originally intended.

Miami Living: How can proactive legal guidance help businesses prevent employment disputes before they escalate?

Regina M. Campbell: Over the years, we have found that businesses reduce risk most effectively when they treat employment law as a proactive part of running the company, rather than something they address only after a complaint is filed.

That begins with employee handbooks and policies that reflect current state and federal law. Well-drafted policies give managers, Human Resources, and leadership a consistent playbook, reduce on-the-fly decision-making, and put the business in a stronger position if a dispute later arises.

Proactive guidance also includes periodic audits that review wage and hour practices, classification decisions, and performance documentation. Regular reviews of employee performance and internal procedures help businesses identify problems early and address them before they escalate into formal disputes.

When issues do surface, companies with strong documentation and an established legal strategy are often able to resolve matters earlier and on better terms, avoiding protracted litigation. In today’s environment, prevention is often the smartest investment a business can make.

The Campbell Law Group (TCLG)

2121 Ponce de Leon Blvd, Suite 540

Coral Gables, FL 33134

Phone: (305) 460-0145

Fax: (305) 675-3973

tclgfirm.com

By Markin Abras.