Minimum wage increases in Florida: Who benefits and what are the employers' obligations?

The implementation of the new minimum wage entails formal and legal responsibilities for employers.

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The state of Florida is preparing for a new increase in its minimum wage.

Starting from September 30, the state minimum wage will increase to 14 dollars per hour, in accordance with the provisions of Amendment 2 to the Constitution of Florida, approved through referendum in November 2020.

This increase is not an isolated event: it is part of a long-term strategy designed to ensure that Floridian workers receive compensation more in line with the cost of living and current economic conditions, especially in the context of persistent inflation and rising pressures on household budgets.

What does Amendment 2 entail and how did it originate?

The Amendment 2 was driven by the committee Florida for a Fair Wage, an initiative led and primarily funded by Orlando attorney John Morgan, known for his social activism and support for progressive causes related to employment and labor rights.

The proposal was put to a popular vote during the general elections in November 2020 and received the support of 60.8% of the electorate, surpassing the constitutional minimum of 60% required to approve an amendment.

This reform introduced an automatic mechanism for increasing the minimum wage: since 2021, the minimum wage increases by one dollar per hour each year until it reaches 15 dollars per hour in September 2026.

From that moment on, the adjustments will be linked to the national consumer price index for urban wage earners and administrative workers (CPI-W), which will ensure an annual update in line with inflation.

Evolution of the Minimum Wage in Florida (2021–2026)

Since the implementation of Amendment 2, Florida has consistently followed the schedule for salary increases.

The following outlines the evolution of the general minimum wage and the effective minimum wage for workers who receive tips:

Evolution of the minimum wage in Florida in recent years

This model of gradual adjustment aims to prevent abrupt impacts on companies' labor costs, while allowing workers to progressively enhance their purchasing power.

Who does this salary increase benefit?

The new minimum wage applies to all workers covered by the Fair Labor Standards Act (FLSA), including:

- Full-time employees.

-Part-time employees.

-Hourly workers.

- Seasonal workers.

-Workers who receive tips, such as waiters, bartenders, hotel staff, among others.

For this last group, state legislation allows employers to apply a "tip credit" of $3.02 per hour.

This means that although the general minimum wage will be $14, employers are only required to pay $10.98 in cash if workers receive enough tips to reach or exceed the legal minimum.

Obligations for Employers: What They Must Do Before September 30, 2025

The implementation of the new minimum wage entails formal and legal responsibilities for employers, as established by the Florida Department of Economic Opportunity (DEO).

Among these obligations are:

-Update payroll systems: Every company must reflect the new minimum wage in its accounting records and payment management software.

-Replace mandatory informational posters: It is mandatory to display the official poster with updated minimum wages in all workplaces. This must be available in English, Spanish, and Haitian Creole, to ensure understanding by the entire workforce.

Complying with payments from the effective date: Any payment below the minimum starting September 30 may be considered a legal violation.

Avoiding legal sanctions: Noncompliance can lead to civil penalties, fines, and even individual or collective lawsuits from affected employees.

This legal framework aims to ensure that no worker in Florida receives a salary lower than the established minimum, regardless of their sector or type of contract.

Economic impact and most affected sectors

The increase in the minimum wage particularly affects sectors where salaries are traditionally low, such as:

Hospitality and tourism.

-Retail.

-Personal care services.

-Restoration and food.

-Cleaning and maintenance services.

In these industries, compliance will be monitored through routine inspections by the DEO and other regulatory entities.

Likewise, labor organizations and unions have reiterated the importance of informing workers about their rights under current regulations.

Comparison with the federal minimum wage and other states

The federal minimum wage in the United States remains set at $7.25 per hour, a figure that has not been adjusted since 2009, despite the significant increase in the cost of living in recent years.

In this context, Florida joins more than 30 states that have decided to establish minimum wages higher than the federal level, reflecting a national trend towards the dignification of work and the reduction of working poverty.

Some of these states include:

-California: $16.00/hour (with higher local adjustments in some cities).

-Washington: $16.28/hour.

-Massachusetts: $15.00/hour.

-New York: $15.00/hour in most areas.

Florida thus positions itself at the forefront of the southeastern United States in terms of wage policy, marking a significant difference compared to neighboring states like Georgia or Alabama, where the federal minimum still applies.

What will happen after 2026? Increases linked to inflation

Once the threshold of 15 dollars per hour is reached in 2026, Amendment 2 establishes that increases will no longer be fixed, but will be calculated each year based on national inflation, using the CPI-W index as a reference.

This will ensure that the minimum wage continues to grow in line with the actual cost of living, thereby protecting the purchasing power of workers.

The increase in the minimum wage in Florida represents more than just a numerical adjustment: it is a structural change in the state's labor policy.

Amendment 2 has successfully introduced a progressive and adaptive formula that combines economic stability for employers with greater dignity for employees.

The challenge now lies in its proper implementation and in ensuring that all parties involved—workers, employers, and authorities—are aware of and respect the new rights and obligations.

Frequently Asked Questions about the Increase in Minimum Wage in Florida

When will the new minimum wage be implemented in Florida?

The new minimum wage of 14 dollars per hour will be implemented starting September 30, 2025, as part of the phased increase established by Amendment 2 to the Florida Constitution.

Who benefits from the increase in the minimum wage in Florida?

The increase benefits all workers covered by the Fair Labor Standards Act (FLSA), including full-time, part-time, hourly, seasonal employees, and those who receive tips.

What obligations do employers have regarding the increase in the minimum wage?

Employers must update their payroll systems and replace the mandatory informational posters in their workplaces. Additionally, they must ensure payments are made from the effective date to avoid legal penalties.

How will minimum wage increases in Florida be calculated after 2026?

Starting in 2026, increases will be linked to the national consumer price index for urban wage earners and clerical workers (CPI-W), ensuring that the minimum wage is adjusted annually according to inflation.

How does Florida's minimum wage compare to the federal minimum wage and that of other states?

The minimum wage in Florida is significantly higher than the federal rate, which has remained at $7.25 per hour since 2009. Florida joins more than 30 states with higher minimum wages, such as California and Washington, positioning itself at the forefront in the southeastern United States.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.