Florida’s 2021 minimum wage will increase for the second time on Sept. 30.
Following a voter-approved ballot initiative in November 2020, Florida is in the unique position of having its minimum wage rate increase twice in the same calendar year.
Effective Sept. 30, 2021, minimum wage in Florida is $10.
Minimum Wage in Florida
At the start of 2021, Florida had an indexed increase on the books, bringing the standard rate to $8.65. Following the successful ballot measure, Florida joined the growing list of states moving toward a $15 minimum wage.
After it goes up to $10 in the fall of 2021, the standard rate will increase on Sept. 30 in future years:
- 2022 – $11
- 2023 – $12
- 2024 – $13
- 2025 – $14
- 2026 – $15
Employers should note that the $15 rate will run through Dec. 31, 2027. On Jan. 1, 2028, and in succeeding years, minimum wage rate increases in Florida will be tied to the Consumer Price Index. (Future increases will also take place on Jan. 1.)
Meanwhile, the voter-approved increase to the standard minimum wage in Florida did not directly address tipped employees. However, the tip credit remains the same, $3.02, which means the tipped employee wage will always be the regular minimum wage less that amount.
With tourism in Florida bouncing back during the second quarter of 2021, employers may want to consider how the minimum wage increase impacts business decisions related new hires, pricing levels and more. From April through June this year, Florida saw 30.563 million visitors from the rest of the U.S., a 215.9 percent increase from the same period last year, also marking an increase from the same period in 2019.
Lastly, the new minimum wage rate in Florida will require an updated labor law posting.
Minimum Wage Management. Simplified.
Minimum Wage Moving to $15
Like many jurisdictions across the U.S., Florida will eventually reach a $15 minimum wage.
The federal minimum wage has been unchanged for more than a decade, and lawmakers continue to introduce bills to increase rates in their jurisdictions.
Additionally, the Fight for $15 movement has regained visibility during the COVID-19 pandemic, and studies continue to show workers cannot afford to live on existing minimum wages, further prompting new legislation and potentially ballot measures, as was the case in Florida.
The unique increase schedule for Florida this year also highlights a sometimes-overlooked aspect of minimum wage management — some jurisdiction’s rates increase at odd times of the year, not simply Jan. 1 and July 1. For example, minimum wage in Connecticut increased Aug. 1, 2021, and in future years will go up on other dates.
For employers in Florida, rates will go up on Sept. 30 for the next few years, then switch to a Jan. 1 schedule; another piece of the employment law compliance puzzle for companies to monitor.