Florida’s minimum wage is a topic of significant interest for workers and employers alike. As the cost of living continues to rise, understanding the minimum wage is crucial for financial planning and business operations. If you’re wondering about the minimum wage in Florida, especially as we look towards 2025, here’s a comprehensive guide to keep you informed.
Florida’s Minimum Wage in 2025: What to Expect
For minimum wage workers in Florida, there’s good news: your paychecks are set to increase. Thanks to a voter-approved amendment, Florida’s minimum wage is on a path to reach $15 per hour.
As of September 30, 2024, the minimum wage in Florida is $13 per hour for non-tipped employees and $9.98 per hour for tipped employees.
Looking ahead to 2025, the minimum wage in Florida will rise again on September 30, 2025, reaching $14 per hour for non-tipped employees and $10.98 for tipped employees. This incremental increase is part of the planned schedule to reach $15 per hour by 2026.
This increase is a direct result of an amendment to the Florida Constitution that voters approved in 2020, mandating a gradual rise in the state’s minimum wage. The initial increase from $8.65 to $10 per hour took place in 2021, followed by annual $1 increases each September until the $15 target is met.
The Journey to $15: Understanding Florida’s Minimum Wage Amendment
The move to raise Florida’s minimum wage to $15 per hour is not a sudden decision but rather the result of a constitutional amendment, Amendment 2, passed by Florida voters in the 2020 election. This amendment aimed to incrementally increase the minimum wage, providing a gradual adjustment for businesses while boosting the earnings of low-wage workers.
The schedule for these increases was clearly laid out in Amendment 2:
- 2021: Increased to $10 per hour
- 2022: Increased to $11 per hour
- 2023: Increased to $12 per hour
- 2024: Increased to $13 per hour
- 2025: Scheduled to increase to $14 per hour on September 30th
- 2026: Scheduled to increase to $15 per hour on September 30th
After reaching $15 per hour in 2026, the minimum wage will no longer increase by a fixed dollar amount each year. Instead, future adjustments will be based on inflation, using the Consumer Price Index, to maintain its purchasing power against the rising cost of living.
Florida’s Minimum Wage Compared: Federal and Other States
It’s important to understand where Florida’s minimum wage stands in the broader context of both the federal minimum wage and minimum wages in other states.
The federal minimum wage in the United States is currently $7.25 per hour. It has remained at this level since 2009. Florida, like many other states, has chosen to set its minimum wage higher than the federal standard.
Compared to other states, Florida’s move to $15 per hour places it among the states with a more substantial minimum wage. While it’s not yet the highest, it’s significantly higher than many states, particularly those that still adhere to the federal minimum wage.
Several states currently have minimum wages exceeding Florida’s current rate, including:
- Washington D.C.: $17.50 per hour
- Washington State: $16.66 per hour
- California: $16.50 per hour
- New York (Specific Counties): $16.50 per hour
- Connecticut: $16.35 per hour
- New Jersey: $15.49 per hour
- Delaware, Illinois, Maryland, Massachusetts, Rhode Island, and the rest of New York State: $15 per hour
Conversely, a number of states still have a minimum wage at the federal level of $7.25 per hour. Some states, primarily in the South, even have no state-mandated minimum wage, defaulting to the federal level.
Minimum Wage for Tipped Employees in Florida Explained
Florida law, like federal law, allows for a different minimum wage structure for employees who receive tips as part of their income, commonly known as “tipped employees.”
In Florida, employers are required to pay tipped employees a direct wage, but they can then credit a portion of the tips received by the employee towards the standard minimum wage. This is known as a “tip credit.”
The maximum tip credit that employers can currently claim under the Fair Labor Standards Act is $3.02 per hour. Therefore, to calculate the minimum direct wage an employer must pay a tipped employee in Florida, you subtract this tip credit from the standard minimum wage.
For example, with the current minimum wage at $13 per hour, the calculation for the tipped minimum wage is:
$13 (Minimum Wage) – $3.02 (Tip Credit) = $9.98 (Tipped Minimum Wage)
As the standard minimum wage increases, the tipped minimum wage also increases proportionally, maintaining the $3.02 tip credit differential until the minimum wage reaches $15 per hour and tipped minimum wage reaches $11.98 per hour.
Minimum Wage vs. Living Wage in Florida: Understanding the Difference
It’s crucial to distinguish between the minimum wage and the living wage. While minimum wage is the legally mandated lowest hourly wage employers can pay, a living wage is a theoretical calculation of the income needed to cover basic living expenses in a specific location.
The living wage concept takes into account the costs of necessities such as housing, food, healthcare, childcare, and transportation. It aims to determine what hourly wage is required for an individual to maintain a basic but decent standard of living without relying on public assistance.
According to MIT’s Living Wage Calculator (February 2024 data), the living wage in Florida is significantly higher than the current minimum wage:
- One adult with no children: $22.43 per hour
- One adult with one child: $37.27 per hour
- One adult with two children: $45.36 per hour
- One adult with three children: $58.76 per hour
These figures highlight the gap between the minimum wage and what is considered a living wage in Florida. While the minimum wage increase is a positive step, many argue that it still falls short of meeting the actual cost of living for individuals and families in the state.
Exemptions to Florida’s Minimum Wage Laws
It’s important to note that while Florida’s minimum wage laws are broadly applicable, there are certain exemptions. These exemptions are often aligned with federal exemptions to the Fair Labor Standards Act and may include categories such as:
- Executive, administrative, and professional employees: These salaried positions often have different wage and hour regulations.
- Commissioned sales employees: Employees whose primary income is from commissions may have different minimum wage rules.
- Farm workers: Agricultural workers may be subject to specific wage regulations.
- Seasonal or recreational establishment workers: Employees in seasonal industries like amusement parks or resorts may have exemptions.
- Newspaper delivery people: This specific occupation may have exemptions.
- Certain informal workers: Babysitters and similar informal workers may be exempt.
- Minors and student workers: In some circumstances, minors or students may be paid a lower minimum wage.
- Employees with disabilities (under specific programs): Programs exist to encourage employment of individuals with disabilities, potentially with adjusted wage scales under specific certifications.
- Employees of very small businesses: Businesses with very low annual gross income (less than $50,000 in some cases) may have exemptions.
- Non-profit and educational organizations (under specific exemptions): Certain non-profits and educational institutions may qualify for exemptions.
It is crucial for both employers and employees to be aware of these potential exemptions and to consult official sources like the Department of Labor for detailed and up-to-date information.
A Look Back: The History of Florida’s Minimum Wage
Florida has a history of taking its own path when it comes to minimum wage. Prior to 2005, Florida’s minimum wage was tied to the federal minimum wage. However, in 2004, Florida voters approved Amendment 5, establishing a state minimum wage that could exceed the federal standard.
Amendment 5, effective in 2005, set the initial state minimum wage at $6.15 per hour, which was already higher than the federal minimum at the time. Furthermore, Amendment 5 mandated annual adjustments to the state minimum wage based on inflation, using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Here’s a brief history of Florida’s minimum wage increases since 2005:
- 2005: $6.15 per hour
- 2006: $6.40 per hour
- 2009: $7.21 per hour
- 2010: $7.25 per hour
- 2016: $8.05 per hour
- 2017: $8.10 per hour
- 2018: $8.25 per hour
- 2019: $8.45 per hour
- 2021: $10 per hour (start of Amendment 2 increases)
- 2022: $11 per hour
- 2023: $12 per hour
- 2024: $13 per hour
This history demonstrates Florida’s commitment to ensuring a minimum wage that reflects both economic realities and the needs of its workforce. The ongoing increases culminating in the $15 per hour target represent a significant step in this direction.
In conclusion, understanding Florida’s minimum wage is essential for anyone working or employing in the state. With scheduled increases and ongoing discussions about living wages, it’s a topic that will continue to evolve and impact the economic landscape of Florida.
