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September 9, 2025 A recent decision from the Fifth District Court of Appeal, Steak ‘N Shake v. Spears,1 highlights the import of Florida’s workers’ compensation adjudicative framework and may serve to prevent highly emotional claims for work-related mental distress from making their way to a jury. Amber Nicole Spears was working as a server at a Steak ‘N Shake restaurant when she was held at gunpoint by an intruder who grabbed her neck, forced her into a back room, and repeatedly threatened to kill her. Spears claimed that she suffered emotional distress as a result of the encounter, which indisputably occurred in the course and scope of her employment. Following this traumatic incident, Spears did not pursue workers’ compensation benefits or otherwise invoke Florida’s workers’ compensation adjudicative process to determine if her injuries were “compensable” (i.e., whether her employer owed her workers’ compensation benefits for the same). Instead, she initiated suit directly in circuit court, bringing a claim for intentional infliction of emotional distress against her employer. Notably, Spears did not bring claims based on any alleged physical injuries suffered as a result of the incident. In response, Steak ‘N Steak claimed that Spears’ claims were barred by the doctrine of workers’ compensation immunity because she had not made a request for benefits and therefore had not taken the first step to determine if her injuries were compensable. The circuit (trial) court rejected this argument, explaining that, because Spears had not alleged any physical injury, her claims fell outside Florida’s workers’ compensation framework and thus were not compensable as a matter of law. In reaching is conclusion, the trial court relied on the language of the Florida Workers’ Compensation Act, which indicates: A mental or nervous injury due to stress, fright, or excitement only is not an injury by accident arising out of the employment. Nothing in this section shall be construed to allow for the payment of benefits under this chapter for mental or nervous injuries without an accompanying physical injury requiring medical treatment. A physical injury resulting from mental or nervous injuries unaccompanied by physical trauma requiring medical treatment shall not be compensable under this chapter. § 440.093(1), Fla. Stat. Steak ‘N Shake appealed the decision to the Fifth District Court of Appeal (DCA). In June of 2025, the Fifth DCA issued its opinion, holding that an employee may not file a tort claim against her employer without first seeking a determination of whether she is entitled to workers’ compensation benefits from either a workers’ compensation carrier or a judge of compensation claims. Read more

September 5, 2025   The U.S. Department of the Treasury and the Internal Revenue Service (IRS) are rolling out guidance on the new “No Tax on Tips” provision under the One Big Beautiful Bill Act (OBBB Act), ushering in a significant change for tax collection for employers with employees who receive tips.   On September 2, 2025, the Treasury Department and the IRS issued a “preliminary list” of tipped occupations clarifying which employees will be entitled to claim tax deductions for tips and unveiled a draft Form W-2 with boxes for tipped wages eligible for the deduction.   Quick Hits ·         The IRS has released a “preliminary list” of occupations that “customarily and regularly” receive tips that are eligible for the new tax deduction for tipped wages introduced by the OBBB Act. ·         The “No Tax on Tips” provision under the OBBB Act allows eligible employees to deduct qualified tips from their taxable income, with a cap of $25,000 per year from 2025 to 2028. ·         A preliminary list of sixty-eight tipped occupations includes unexpected roles such as dishwashers and plumbers, with a final list expected by October 2, 2025. ·         The IRS has further unveiled a new draft Form W-2 that implements the changes introduced by the OBBB Act.   OBBB Act ‘No Tax on Tips’ Under the “ No Tax on Tips Provision ,” effective 2025 through 2028, employees and self-employed workers may deduct qualified tips received while working in occupations that customarily and regularly receive tips as specified by the IRS. “Qualified tips” are defined as voluntary cash or charged tips paid by customers or received through tip sharing.   Eligible tipped employees, including those who itemize and do not itemize their taxes, can claim a tax deduction up to $25,000 per year. Employers with tipped employees must file information returns with the IRS or Social Security Administration (SSA) and provide statements to employees showing their cash tips received and occupation.   Tipped Occupations The “ preliminary list ” sets forth “occupations that customarily and regularly received tips on or before December 31, 2024” and provides codes for tax reporting purposes. The OBBB Act requires the Treasury Department to publish the final list by October 2, 2025. However, while the “preliminary list” is not final, the Treasury Department and IRS said they “anticipate that the official proposed list will be substantially the same as this preliminary list.”   Significantly, the list includes some occupations, such as dishwashers, cooks, plumbers, and electricians, that are not typically considered as jobs that “customarily and regularly” receive tips by the U.S. Department of Labor (DOL) for purposes of the Fair Labor Standards Act (FLSA).   The preliminary list identifies sixty-eight distinct occupation codes under eight industry categories. Read more.

September 3, 2025 Florida’s minimum wage will rise yet again on September 30, jumping to $14/hour (and to $10.98 for tipped workers) as part of a series of scheduled increases approved by voters in 2020. While employers across the Sunshine State face a new wave of possible challenges, this increase doesn’t have to disrupt your business. We’ll tell you what you need to know and what you can do to prepare.   How We Got Here In November 2020, Florida voters approved a constitutional amendment that gradually increases the state’s minimum wage to $15 per hour for most non-exempt employees by 2026.   As a result, the state’s hourly minimum wage increased from $8.65 to $10 in 2021 and has been rising since by $1.00 each year on September 30 ($11 in 2022 and $12 in 2023).   The next wage hike will soon take effect and continue rising through 2026, as shown in the schedule below: $14.00 on September 30, 2025 $15.00 on September 30, 2026   Florida’s tipped employees also have received bumps in minimum wages each year since 2021. Just like non-tipped employees, the minimum wage for tipped workers will increase by $1.00 each year through 2026, as shown in the schedule below: $10.98 on September 30, 2025 $11.98 on September 30, 2026   What Should You Do? All Florida employers are required to comply with the new minimum wage requirement. If an employee is not paid at the required rate, they could be entitled to recover back wages plus damages and attorneys’ fees and costs under the state's wage theft law and the Florida Minimum Wage Act. In addition, employers found liable for intentionally violating minimum wage requirements could be subject to a $1,000 fine per violation. Here’s what you should do to prepare for the new wage hike and stay compliant:   Make sure that payroll is set up to capture the new minimum wage. Update the required minimum wage poster to reflect the new rate. As a reminder, all employers are required to post federal and Florida employment law posters where they can be easily seen by employees.   aware of local wage theft ordinances. Several counties around the state have their own wage theft ordinances that provide for more relief than the state law. For example, if an employee files a wage theft claim in Miami-Dade County through the county’s Wage Theft Program, employers face paying three times the amount of wages owed to an employee.   Check compliance with tip credits and tip pools. Employers that take a tip credit must ensure that tipped employees still receive at least the new minimum wage when tips are included. If your payroll system or tip pool does not properly account for the increase, you could inadvertently invalidate the tip credit and violate wage laws (see Fair Labor Standards Act, 29 U.S.C. § 203(m) and Florida Minimum Wage Act, Fla. Stat. § 448.110). Review your pay practices and any tip-sharing arrangements to confirm they remain compliant under the new rate.   Look out for future wage hikes. While the increases to minimum wage under the current constitutional amendment end in 2026, we expect another amendment will make its way onto the ballot before then and potentially increase the minimum wage further. Employers must be mindful of these increases for both compliance and budgeting purposes.

September 2, 2025   Workers’ compensation insurance rates in Florida should decrease by an average 6.9% in 2026 under a proposal by the National Council on Compensation Insurance.   Submitted last month, the NCCI’s proposed reduction is a recommendation only. Rates are set by the Florida Commissioner of Insurance, usually after a public hearing.   The recommended filing is based on experience data for policy years 2022 and 2023 as of year‐end 2024. The proposed reduction is being driven by declines in lost-time claim frequency, according to a summary from NCCI.   “The workers compensation system remains healthy. For the last decade, the system has broadly benefited from a steady drop in claim frequency, rising wages, and moderate severity. The changing workforce and evolving economy also continue to impact workers compensation,” the summary notes.   Workers’ compensation is a no-fault system that aims to protect employers from getting sued by injured employees and, in exchange, employers provide employees injured on the job the care they need to return to work. Employers are required to provide compensation for lost wages if an employee misses more than eight days of work due to an on-the-job injury.   Most employers in Florida are required to carry workers’ compensation insurance but there are exceptions for businesses with four or fewer employees and for construction companies with four or fewer officers. While those firms aren’t mandated to carry the coverage, they are required to file for exemptions with the state. Data show that 203,365 employers filed for exemptions with the state in calendar year 2024.   Workers’ compensation affects a large and disparate group of interests, including business groups, labor unions, insurance companies, plaintiffs’ attorneys, and injured workers. Because of that, workers’ comp bills in the Florida Legislature attract a spate of special interests, and getting changes passed through the Legislature and signed into law isn’t always easy.   A 2025 review of 50 states and Washington, D.C., workers’ compensation rates by the Oregon Department of Consumer and Businesses Services shows Florida ranked No. 30 in the nation for workers’ comp costs in 2024. That’s an improvement from the previous analysis of 2022 premium data, when Florida ranked No. 28 for workers’ comp premiums.   Hawaii had the highest workers’ compensation costs in 2024, according to the report, followed by New Jersey, New York, California, and Vermont. North Dakota had the lowest rates in the nation.   If the proposed reduction (or a modified reduction) is approved, it will be the ninth consecutive year in which workers’ compensation rates have been ordered reduced by the state’s insurance commissioner. Florida Insurance Commissioner Mike Yaworsky on Nov. 18 last year ordered an average 1% rate decrease in workers’ compensation rates effective Jan. 1.

September 2, 225 BOYNTON BEACH, FL  – The U.S. Department of Labor has cited a Port Saint Lucie tree service contractor for allegedly exposing workers to crushed-by hazards after an employee suffered fatal injuries while operating a woodchipper at a Boynton Beach worksite in January 2025. Investigators with the department’s  Occupational Safety and Health Administration  cited Carlton’s Tree Service Inc. with a serious violation. To address the violation, the employer will pay $16,550 in penalties and take actions to amend the hazard. Learn more about OSHA , including safe work practices when operating a  chipper machine . Employers may contact the agency for information about OSHA’s  compliance assistance resources and for free help on complying  with OSHA standards.

August 27, 2025 Nearly seven in 10 organizations experienced employment-related claims in the past year while new workplace dynamics are creating unprecedented risk exposures, according to an analysis of the employment practices liability landscape by QBE Insurance. The modern workplace transformation is driving a notable increase in employment-related legal challenges, QBE reported. Among the 200 legal and HR professionals surveyed from companies with annual revenues between $500 million and $5 billion, 69% reported their organizations faced claims alleging discrimination, harassment, retaliation or other employment issues over the past 12 months. Looking ahead, the trajectory for employment-related claims appears concerning. More than four in 10 respondents anticipate claim frequency will rise over the next year, with 8% predicting a significant increase and 34% expecting a slight uptick. The risk landscape is shifting toward both traditional and emerging exposure areas. Wage, hour and leave-related issues top the list of claims concerns over the next 12 months at 55%, tied with breach of employment contract claims. However, newer risks are gaining prominence, with 51% identifying artificial intelligence use in HR functions as a likely source of future claims, matching the percentage concerned about workplace harassment and discrimination. The rapid adoption of AI technology in human resources processes presents particular challenges, according to QBE. An overwhelming 84% of organizations currently use AI for tasks like resume screening and performance reviews, while another 11% plan implementation within the next year. Despite this widespread adoption, 72% of respondents expressed concern about associated risks, including potential algorithmic bias that could trigger discrimination claims under federal civil rights legislation. Read more