This increase is part of a gradual wage hike approved by voters in 2020, which aims to raise the minimum wage to $15 per hour by 2026. The change affects not only non-tipped employees but also tipped workers, who will see their base wage increase as well.
The Amendment 2 progression
In 2020, Florida voters passed Amendment 2, a constitutional amendment that laid out a series of wage increases over several years. The amendment’s goal is to adjust wages in response to rising living costs, ensuring that workers in the Sunshine State earn a living wage. According to this amendment, Florida’s minimum wage will rise by $1 annually from its current rate of $13 per hour (effective September 30, 2024), reaching $14 per hour in 2025 and ultimately $15 per hour in 2026.
For tipped employees who rely on customer gratuities, the base wage will increase accordingly. In 2025, tipped workers will earn a base wage of $10.98 per hour, and by 2026, this will rise to $11.98 per hour. Employers must ensure that tips bring their employees’ earnings to at least the general minimum wage.
The implications for workers and businesses
Thousands of low-wage workers across Florida are set to benefit from the increase, helping them to better meet the cost of living, which has been steadily rising in cities like Miami, Orlando, and Tampa. Florida’s minimum wage workers often struggle with high costs of housing, transportation, and other necessities, making these increases vital to their financial stability.
On the employer side, businesses are expected to comply with the wage hikes by adjusting their payroll systems and budgeting for the increased labor costs. Employers found to violate the new wage laws could face fine charges and may also be required to pay back wages plus damages under Florida’s wage theft law. Some businesses may need to rethink their staffing or operational models to absorb the increased labor costs without raising prices too sharply.
Economic Impact
Florida’s minimum wage adjustments are part of a growing national trend, where states like California, New York, and Illinois have already enacted or are considering similar hikes. The federal minimum wage, however, remains at $7.25 per hour, a figure unchanged since 2009. The stark contrast between federal and state minimum wages highlights the growing divide in wage standards across different regions.
Florida’s phased approach offers a balance, allowing businesses time to adjust while providing much-needed relief to workers. According to Fisher Phillips, an employment law firm, employers should prepare for future wage hikes by updating their payroll and ensuring compliance to avoid legal penalties.
