Attention employers: There are important updates regarding increases in the minimum wage in Florida that you need to know.
On January 1, 2021, Florida’s minimum wage will increase by $.09 to $8.65 per hour, reflecting annual inflation. However, minimum wage will gradually increase more over the next few years because of voters’ approval of Florida’s Constitutional Amendment 2 in November 2020. On September 30, 2021, Florida’s minimum wage will rise to $10.00 per hour. After that, the minimum wage will increase by $1.00 per hour every September 30 until it reaches $15.00 per hour on September 30, 2026. On September 30, 2027, and every September 30 thereafter, Florida’s minimum wage will be recalculated to reflect annual inflation once again, with the adjusted rates taking effect on the following January 1st.
Florida’s Minimum Wage (per hour):
• Until December 31, 2020: $8.56
• January 1, 2021: $8.65
• September 30, 2021: $10.00
• September 30, 2022: $11.00
• September 30, 2023: $12.00
• September 30, 2024: $13.00
• September 30, 2025: $14.00
• September 30, 2026: $15.00
• January 1, 2027: TBD – adjusted for inflation
Although the minimum wage rates will also apply to tipped employees, Florida employers who satisfy the strict requirements of the Fair Labor Standards Act (FLSA) will still be able to apply a credit of up to $3.02 per hour toward the minimum wage owed to tipped employees (called a “tip credit”), provided the tip credit does not exceed the amount of tips actually received by such employees. Again, this tip credit is only available if the other requirements of the FLSA tip credit provisions are satisfied, and FLSA regulations and interpretations change frequently. (For example, Congress amended the FLSA tip provisions in 2018. And on December 22 of this year, the Department of Labor announced a final rule revising its tipped employee FLSA regulations.) Employers utilizing the tip credit must keep up-to-date on these revisions to be sure they remain eligible for the tip credit.
Florida law requires Florida employers to post a sign reflecting the minimum wage rate in a conspicuous area at each location where employees work. The Florida sign can be downloaded here. A similar sign reflecting the federal minimum wage must be posted as well. The federal poster can be downloaded here.
If you have any questions on these recent changes or any other employment law developments, please contact Trenam Law’s Employment Law Group.
