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Florida Upcoming Minimum Wage Increase

16
Nov

Starting January 1, 2021, Florida’s minimum wage increases to $8.65 per hour; previously $8.56.

On November 3, 2020, Florida voters approved Amendment 2. Voting “yes” effectively amends Florida’s constitution to gradually increase thestate’s minimum wage to $15 an hour by the year 2026. Florida is now the eighth state in the county to raise its minimum wage to $15 over the next several years now (now joining California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, and New York).

For employers in the hospitality industry with tipped employees, a tip credit of up to $3.02/per hour may be taken for tips actually received by these employees. Employers must still pay employees a direct hourly wage of $5.63 (Minimum wage rate, $8.65, minus the federal tip credit, $3.02).

 

Florida employers are legally required to post the state minimum wage notice as required by the FLSA (this is listed on the Florida Labor Law Poster).  

 

What does this mean for Florida employers?

Amendment 2 does not take effect immediately: on September 30, 2021, the minimum wage will rise from $8.65 an hour to $10.00 an hour (a $1.35 per hour increase). After September 30, 2021, the minimum wage will increase $1.00 per year through 2026, according to the following schedule:

  • $11.00 on September 30, 2022
  • $12.00 on September 30, 2023
  • $13.00 on September 30, 2024
  • $14.00 on September 30, 2025
  • $15.00 on September 30, 2026

After 2026, the minimum wage will be adjusted annually for inflation, as it has been since 2004.   Employers can still apply a tip credit of $3.02 per hour.   Therefore, by 2026, the minimum wage for tipped employees will be $11.98 an hour.

 

We’re Here to Keep You in Compliance

If you order our 1-Year Compliance Plan or Florida Labor Law Poster, you will automatically receive the new Florida State poster, which is now available. And because we provide free poster updates for mandatory changes, no matter how many occur during the plan year, you can always count on Poster Compliance Center to keep your business in compliance!