Feb 10, 2015

Proposed Florida Law Could Have Big Impact on Day Laborers’ Compensation

On January 22, 2015, Senate Bill 456 was introduced seeking an amendment of Florida Statute Section 448.24 that affects the duties and rights of day laborers. If enacted, the bill will take effect July 1, 2015, and subject labor pools to new requirements relating to methods and notice of compensation to day laborers. Labor pools that choose to compensate by payroll debit card should be aware of additional notice requirements.  Finally, every labor pool will have the option of delivering the currently required itemized statement of wage deductions electronically upon written request of a day laborer.

Compensation Methods:

If Florida enacts the bill, labor pools will have the option of choosing from several payment methods to compensate day laborers.  Labor pools may already compensate day laborers with cash or commonly accepted negotiable instruments that are payable in cash, on demand at a financial institution, and without discount.  The bill would provide for the additional options of compensating by payroll debit card or by electronic fund transfer, which must be made to a financial institution designated by the day laborer.

Required Notice:

Regardless of compensation method, labor pools will be required to provide every day laborer with a notice before the day laborer’s first pay period.  The notice must include the method of payment the labor pool intends to use and the day laborer’s option to elect a different method of payment.  Further, in the notice, labor pools must authorize day laborers to elect not to be paid by payroll debit card or electronic fund transfer.  Labor pools opting for payroll debit card will face additional notice requirements and must: (1) offer the day laborer the option to elect payment by electronic fund transfer; and (2) before selecting payroll debit card, provide the day laborer with a list, including the address, of a business that is in close proximity to the labor pool and that does not charge a fee to withdraw the contents of the payroll debit card.

Full text of Senate Bill 456 can be found on the Florida Senate website.

If you have any questions about any of the issues discussed in this alert, please contact your Labor and Employment counsel at Smith, Gambrell & Russell, LLP.

This client alert is intended to inform clients and other interested parties about legal matters of current interest and is not intended as legal advice.

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