A state law passed in Florida in 2024 begins to take effect this week regarding new contracts in Miami-Dade County and could lead to thousands of workers no longer being protected by the so-called “living wage”, which currently amounts to $22.53 per hour for certain employees.
The measure arises from the HB 433 law, approved by the Florida Legislature two years ago, which amended section 218.077 of the Florida Statutes and limits the ability of local governments to impose wages or labor benefits on contracting companies that exceed those established by the state.
The provisions related to these contracts come into effect on October 1 and affect agreements signed from this date forward.
The previous contracts are expressly protected by the legislation itself, so the change does not mean an automatic and immediate reduction in the salaries of all affected workers.
However, as the existing contracts expire and Miami-Dade awards new ones, companies will no longer be required by the county to pay the special minimum wage that has been established for years through its "living wage" ordinance.
More than 20,000 workers hired by the county could be impacted over time, as noted by El Nuevo Herald.
Among them are employees in sectors such as cleaning, security, food preparation and distribution, transportation, and certain health services.
From $22.53 per hour to a state minimum of $15
For the fiscal year 2026-2027, Miami-Dade established a living wage of $18.40 per hour for covered workers whose employers provide health benefits that meet certain requirements. For those not receiving such benefits, the rate increases to $22.53 per hour, according to the county's official documentation.
The notice published by Miami-Dade for the new fiscal year warns that section 218.077 of the Florida Statutes prevents the county from imposing a minimum wage or labor benefits on employees working under contracts awarded after September 30, 2026.
In those new contracts, the general salary floor will be determined by state regulations.
Starting this September 30, Florida's minimum wage is $15 per hour, following the completion of the schedule of increases approved by voters through a constitutional amendment in 2020.
This does not mean that contractors have to reduce wages to $15. Companies may maintain higher pay, and other agreements or legal provisions can also determine how much a worker earns.
What disappears for the new affected contracts is Miami-Dade's ability to compel the contractor, through its contracting power, to pay the county's living wage.
A worker who currently earns $22.53 per hour and will soon earn $15 would lose $7.53 for every hour worked. In a 40-hour work week over 52 weeks, the difference would be approximately $15,662 annually.
Miami-Dade has been protecting the "living wage" since 1999
Miami-Dade established its living wage policy through Ordinance 99-44, approved in 1999 and later incorporated into section 2-8.9 of the County Code.
The measure aimed to establish a salary level above the minimum for certain workers employed by companies that received public funds through service contracts.
The regulation has covered, among other things, food preparation contracts, safety, cleaning and maintenance, non-supervisory administrative work, transportation, parking, printing, and gardening. It also includes activities at Miami International Airport.
What does Florida's HB 433 law exactly establish?
The HB 433, officially called “Employment Regulations”, was approved by the Florida Legislature in March 2024 and subsequently became state law Chapter 2024-80.
In terms of salary, the regulation establishes that a political subdivision of the state cannot require an employer to pay a minimum wage different from the state or federal minimum, except for the exceptions outlined in the legislation itself.
It also prohibits local governments from using their procurement and contracting procedures to control or influence the wages or labor benefits provided by suppliers, contractors, and businesses that engage with those administrations.
Furthermore, local authorities cannot grant advantages to one company over another in a public contract based on the salaries or benefits they offer to their employees. However, the law does not prevent a local government from determining the salaries of its own employees.
The measure divides supporters and critics
The amendment confronts two perspectives on public procurement. During the legislative debate, supporters of HB 433 advocated for limiting local regulations on businesses and establishing uniform rules across Florida.
The initiative was approved in its final vote by 74 votes to 36 in the House of Representatives and by 24 votes to 15 in the state Senate.
Critics, including labor organizations and local authorities, have warned that eliminating salary requirements for public contracts may put downward pressure on the earnings of workers in one of the areas with the highest cost of living in Florida.
The impact on wages will be gradual
The true impact of the new regulations will depend on when the existing contracts expire and are put out to tender again. Those working under agreements made prior to the deadline are currently maintaining the conditions set by the county ordinance.
The state minimum of $15 represents an increase from the $14 that has been in place until now, but it remains significantly lower than the $22.53 that Miami-Dade requires from certain contractors who do not provide the health benefits outlined in its living wage scale.
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