Maybe Florida’s minimum wage isn’t THE biggest headline of 2020, but it is notable and important for employers to be aware.
There are two recent developments for Florida employers with respect to the state minimum wage:
- Starting Jan. 1, 2021, the Florida minimum wage will increase-
- From $8.56 to $8.65/hour
- From $5.54 to $5.63/hour for tipped employees
By statute, Florida’s minimum wage increases every year and is calculated using the Consumer Price Index (CPI) for the South region. The new rate is announced every October 15th.
In addition to requirements to post notice of the federal minimum wage, Florida employers must also post notice of the state minimum wage.
- An amendment to increase Florida’s minimum wage to $15 by 2026.
Amendment 2 is on the November 3rd ballot and, if passed, would set Florida’s minimum wage at $10 starting Sept. 30, 2021. The rate would then increase by $1.00 every year until reaching $15 on Sept. 30, 2026.
For tipped employees, the rate would start at $6.98 on Sept. 30, 2021, and increase by $1.00 every year until hitting $11.98 on Sept. 30, 2026.
From then on, the minimum rate would increase based on the CPI for Urban Wage Earners and Clerical Workers.
Amendment 2 does have a chance of passing. Employers should plan for the possibility of a significant minimum wage increase.