Florida minimum wage increases Sept. 30, 2023, an outlier from the schedules of many other jurisdictions across the U.S.
Following a voter-approved ballot measure in 2020, the state will see scheduled increases on Sept. 30 through 2026. And Florida is another state set to eventually reach the $15 threshold.
However, there are some other nuances to consider with Florida minimum wage.
Minimum Wage Management. Simplified.
Florida Minimum Wage
To begin, the standard minimum wage in Florida is currently $11.
Effective Sept. 30, 2023, it increases to $12, with regular $1 increases through 2026. The schedule is as follows:
- 2022 – $11
- 2023 – $12
- 2024 – $13
- 2025 – $14
- 2026 – $15
Following that last scheduled increase, however, Florida minimum wage will shift.
Florida minimum wage will continue at $15 through Dec. 31, 2027. Starting in 2028, the minimum wage will move to indexed increases based on the applicable Consumer Price Index.
But the Florida minimum wage will increase on Jan. 1, 2028, and in succeeding years, with state officials announcing the adjusted rate on Sept. 30 of the prior year.
Fortunately for employers, starting in 2028 the state will move to a more regular schedule, as most jurisdictions with their own minimum wage laws increase on Jan. 1 or July 1 each year.
Lastly, there are no local jurisdictions in Florida with their own minimum wage rate.
How Many States Have a $15 Minimum Wage?
Florida Minimum Wage: Tipped Employees
It is worth noting that the ballot referendum of 2020 did not address the rate for tipped employees.
Although some jurisdictions, notably Washington, D.C., are moving toward eliminating a specific rate for employees who regularly receive tips.
However, the Florida minimum wage tip credit remains the same, $3.02, and the tipped employee wage will always be the regular minimum wage less that amount.
Managing Minimum Wage Rates
While the Sept. 30 minimum wage schedule for Florida may seem unique, it still trails behind what Connecticut has done in recent years. (And don’t forget Oregon minimum wage.)
In 2021, it went up in August. The state shifted to July 1 for 2022 and saw its latest rate effective June 1, 2023. Then Connecticut will increase minimum wage through indexing starting Jan. 1, 2024.
These situations underscore the challenges of large employers in managing minimum wage rates. Add in ballot measures, adjustments to existing laws (as was the case recently with Maryland minimum wage), industry-specific rates and more, and compliance becomes even more complex.
Meanwhile, the “Fight for $15” appears to be shifting to the Fight for $20 as a new minimum wage push. Since the Fight for $15 started in 2012, dozens of jurisdictions have passed new minimum wage laws. Many of these are at the city level, where several rates have long since passed the $15 threshold (check out California minimum wage, for example).
With little movement on a federal rate increase, some advocates and lawmakers are pushing for a Fight for $20, as evidenced by bills under consideration in New York, Massachusetts and elsewhere. (New York Minimum Wage Update.)
Plus, new rates often require updated labor law posters. For examples, look to the July 1, 2023, rate updates that require new posters.
Taken together, managing minimum wage rates will only grow more difficult in the future.
Minimum Wage Compliance Resources
Employers that operate in Florida should ensure they are ready for the new rate $12 standard rate, effective Sept. 30, 2023.
And while the Florida minimum wage will continue to go up on Sept. 30 through 2026, it will eventually shift to Jan. 1 increases, which should take some pressure off compliance teams.
Still, the rise of new minimum wage laws across the country continues. Employers should always keep an eye out for new or changing laws.