FL Minimum Wage Increasing to $15 an Hour

December 4, 2020

Florida’s Minimum Wage Will Be Going up Throughout the Next Six Years, and Will Ultimately Reach $15 An Hour

More than 60% of Florida voters approved Amendment 2 on November 3, 2020, which amends Florida’s Constitution and increases the minimum wage in the state. With this new mandate comes new changes that you should be aware of. In September 2021, Florida’s current minimum wage of $8.56 an hour will be increased to $10 an hour. Every year after the minimum wage will increase by $1 until 2026 when it reaches $15 an hour.

Who Does the Minimum Wage Rate Affect?

All public and private sector employees – the size or number of employees has no bearing on the minimum wage rate.

What Do Employers Need to Know About the New Minimum Wage Rates?

Here is the hourly minimum wage schedule that employers should use to pay non-tipped employees:

  • Now-December 31, 2020 – $8.56
  • January 1, 2021-September 29, 2021 – $8.65
  • September 30, 2021-September 29, 2022 – $10.00
  • September 30, 2022-September 29, 2023 – $11.00
  • September 30, 2023-September 29, 2024 – $12.00
  • September 30, 2024-September 29, 2025 – $13.00
  • September 30, 2025-September 29, 2026 – $14.00
  • September 30, 2026 – $15.00

What happens once the minimum wage reaches $15 an Hour in 2026?

Starting September 30, 2027, the Florida Department of Economic Opportunity will adjust the minimum wage rate annually. They will base their adjustments on the Consumer Price Index for Urban Wage Earners and Clerical Workers.

How Does the Minimum Wage Rate Affect Tipped Employees?

With the changes to Amendment 2, the allowable tip credit for tipped employees under the Fair Labor Standards Act still allows Florida employers to take a tip credit of up to $3.02 an hour for tipped employees. The tipped employees minimum cash wage rate will follow this schedule:

  • Now-December 31, 2020 – $5.54 an hour plus tips
  • January 1, 2021-September 29, 2021 – $5.63 an hour plus tips
  • September 30, 2021-September 29, 2022 – $6.98 an hour plus tips
  • September 30, 2022-September 29, 2023 – $7.98 an hour plus tips
  • September 30, 2023-September 29, 2024 – $8.98 an hour plus tips
  • September 30, 2024-September 29, 2025 – $9.98 an hour plus tips
  • September 30, 2025-September 29, 2026 – $10.98 an hour plus tips
  • September 30, 2026 – $11.98 an hour plus tips

How Many States Have Increased the Minimum Wage to $15 an Hour?

Eight states have currently raised their minimum wage to $15 an hour. Florida is the first state in the south and the most recent to join the ranks of California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, and New York. The state of Florida is actually the first state to increase the minimum wage to $15 an hour by a citizens’ initiative ballot measure. While similar increases were introduced in the past during the Florida legislative sessions, the measures never passed.

If you have questions about this or other workplace law developments, please contact Whittel & Melton at 866-608-5529 or contact us online.

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