Effective January 1, 2021, Florida’s minimum wage increased from $8.56 to $8.65 per hour. Tipped employee wage minimum increased from $5.54 to $5.63 per hour. In November, Florida voters passed the ‘$15 Minimum Wage Initiative’ (FL Amend. 2) by over 60%. This amendment will result in a second increase to Florida’s minimum wage to $10.00 per hour on September 30, 2021. Employers will still be able to take a tip credit of $3.02 per hour for tipped employees.
When determining if an employee is considered a ‘tipped employee’, Florida uses the federal definition in the Fair Labor Standards Act (FLSA) which considers positions where tips are customarily and regularly received in an amount at least $30 per month. It is especially important to ensure that all employees are reporting all tips received, as an employer could open themselves up to a wage and hour action if the tips received, along with the reduced hourly wage, do not add up to the minimum wages required under Florida law.
In addition to the two 2021 increases, the amendment requires an annual wage increase to bring Florida to $15.00 per hour by 2026 on the following schedule:
$11.00 effective September 30, 2022;
$12.00 effective September 30, 2023;
$13.00 effective September 30, 2024;
$14.00 effective September 30, 2025;
$15.00 effective September 30, 2026.
Additional annual increases after September 2026 will be based upon the ‘Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region.’ The Florida Department of Economic Opportunity’s 2021 Minimum Wage Poster can be found at the following links: (English | Spanish | Creole)
Our South Florida attorney provides legal services in many areas of employment law and business law. We pride ourselves on being the affordable lawyer for your business. Contact The Walsh Law Firm today to discuss wage increase policies and employment compliance for your business. We’re always here to help.