Florida’s minimum wage rate will increase gradually to $15 an hour.
On November 3, 2020, over 60% of Florida voters approved Amendment 2, which increases the minimum wage and amends Florida’s Constitution. Under the new mandate, Florida’s minimum wage rate will increase to $10 an hour in September 2021. The minimum wage then will increase by $1 each year until it reaches $15 an hour in 2026. The minimum wage rate applies to all public and private sector employers, regardless of size or number of employees. Amendment 2 does not change the allowable tip credit for tipped employees meeting the eligibility requirements under the Fair Labor Standards Act. Florida employers may continue to take a tip credit of up to $3.02 per hour for properly classified tipped employees. Since this credit will remain at $3.02, projected minimum wage rates for tipped employees are also included in the table below.
Employers will need to adjust their payroll procedures to accommodate the minimum wage increase set forth on September 30th. You can also use this information to plan for annual minimum wage increases through 2026.