Apart from sunshine and beaches, the minimum wage is another topic of discussion in Florida. With the different cost of living in different regions of this state, Florida minimum wage system is known to be quite unique as compared to other US states. Every year, proper adjustments are made to Florida minimum wage to account for inflation accordingly. These changes made in the minimum wage affect businesses and workers alike.
Florida Minimum Wage: An Overview
It is known to be the lowest hourly wage among all the US States. The minimum state in this state differs from the federal minimum wage. At present, $7.25 per hour is the minimum federal wage, but after the approval of Amendment 2 in 2020 Florida minimum wage is gradually rising every year.
Voters passed this amendment that mandates that Florida minimum wage will have incremental increase till it reaches $15 per hour by 2026. A phased-in approach has been taken to let the employees and businesses adjust to these changes accordingly.
Florida Minimum Wage 2023
It was $7.98 per hour for tipped employees and $11 per hour for non-tipped employees in 2023. These wage rates are known to be higher than that of federal minimum wage which shows Florida’s commitment to offering better pay check to its employees.
As compared to the minimum wage in 2022, this was a significant increase in minimum wage in Florida. This was done under the plan of systematically increasing this state’s wage to $15 per hour by 2026. The annual adjustments depending on the CPI (Consumer Price Index) is also applied to the wage in Florida. It ensures that employees’ wages stay in line with the rising cost of living.
Minimum Wage 2024
In the year 2024, it was increased to $8.98 per hour for tipped employees and $12 per hour for non-tipped workers. This has improved the situation for the workers and employees a lot by making them happier. It let them improve their standard of living to some extent. This wage increase was in accordance with the plan to make $15 per hear by 2026.
It is there to benefit thousands of employees and workers. It also left a deep impact on employers and businesses in the state. While the employees have been benefitted and happier, the employers have shown concerns about the rising minimum wage in this state. Small businesses have been affected most by this as their revenue has dipped due to this. But on the other hand, the increased wage motivated the workers and employers to work harder to increase the business revenue.
Florida Minimum Wage: A Detailed Breakdown
The Amendment 2
Amendment 2 was made on Florida minimum wage by the voters in 2020. This was a historic measure and effort behind increasing the minimum wage in the state. Prior to this amendment, the wage used to be adjusted annually in accordance with inflation, but it was not enough for the workers to meet their living costs. This is why Amendment 2 was brought in:
- 30th Sep 2021: $10 per hour was set as the minimum wage
- 30th Sep 2022: $11 per hour was set as the minimum wage
- 30th Sep 2023: $12 per hour was set as the minimum wage
- 30th Sep 2024: $13 per hour was set as the minimum wage
- 30th Sep 2025: $14 per hour will be set as the minimum wage
- 30th Sep 2026: $15 per hour will be set as the minimum wage
This minimum wage will again be adjusted after 2026 in accordance with the inflation so that employees would be able to meet their cost of living.
Minimum Wage for Tipped Employees
Florida has different wage structure for the tipped employees and workers (individuals who get, on average, $30 tips every month). They are subjected to wage hike but the rate is lower than that of non-tipped employees. It is because the tipped employees make some additional earnings through tips. $7.98 per hour was Florida minimum wage 2023 and $8.98 per hour was minimum wage in 2024 for the tipped workers in Florida.
Federal Minimum Wage vs Florida Minimum Wage
The minimum wage in Florida is higher than that of the federal minimum wage. While the federal minimum wage has been $7.25 per hour since 2009, the Florida minimum wage has significantly increased after Amendment 2. This state has decided to increase its minimum wage because it thinks that $7.25 is not enough to meet the basic needs and cost of living in Florida.
This wage increase has contributed to an increased standard of living. It has also inspired them to put more effort into their workplace. Hence, it has benefitted both employers and employees.
How Minimum Wage and Cost of Living in Florida
Different thriving industries like technology, agriculture, and tourist has contributed into a diverse economy in Flordia. But there are different costs of living in different areas of Florida. For example, places like Tampa, Orlando, and Miami have seen sharp increased in overall living expenses and housing costs in last few years, which needed increased minimum wage.
For instance, the recent surged prices in Miami have made it difficult for the low wage workers and employees to afford housing and other essential necessities. The increased wage helps them to meet the basic necessities and meet the cost of living effectively.
The Impacts of Increased Minimum Wage in Florida
There are various impacts and benefits that you should know about. It impacts both businesses and workers alike. Not to mention its overall influence on the economy.
Benefits for the Employees
The increased minimum wage greatly benefits the workers and employees. It lets them meet their basic cost of living. In the 2024, the increased minimum wage of $12 per hour has immensely benefitted workers at all sectors such as food service, retail, hospitality and other sectors. The increased wage contributes to reduced turnover for business, enhanced job satisfaction, and improve standard of life for the workers and their families.
On the other hand, the increased wage also alleviate poverty as the workers get to meet basic needs such as health, food, and housing among other things. Higher minimum wage also ensures more amount of disposable earnings for the employees, effectively stimulating local economies through enhanced consumer spending.
Challenges for Employers and Business
On the one hand, the increased minimum wage benefits the employees and workers, but on the other hand, it creates challenges for businesses. Small businesses and startups, with tight profit margins, gets most impacted by this. Such business must find suitable ways to deal with the increased minimum wage per hour. They might cut on the employee benefits, reduce the staff hours or do other things.
If some small businesses cannot keep with the increased minimum wage structure then they might find it difficult to sustain in the future. Hence, most of the small businesses and employers are against this increased minimum wage.
Economic Impact
The increased minimum wage is likely to boost the economy of Florida. As the workers get more money into their pockets, they will spend more on goods and services. As a result, it promotes business growth and drives demand in the market.
But according to the financial experts, increased minimum wage might lead to inflationary pressure because businesses will pass on higher labour costs to the consumers. It will in-turn results in higher prices for services and goods, specifically in industries like hospitality and food.
What’s Next?
It will be under constant scrutiny by the authorities. Its impacts and effects on workers, economy and businesses will be monitored. By 2025, the minimum wage will reach $15 per hour which will be quite a significant milestone for Florida. This wage is still likely to increase even after 2025 to adjust with the rising inflation.
Conclusion
It has impacted the lives and condition of the workers and individuals. This has also influenced businesses and employers to some extent. Overall economy of the state also gets impacted. According to the Amendment 2, the minimum wage will get increased till it reaches $15 per hour by 2025 in Florida.
Once it reaches, then further decision on Florida minimum wage will be determined. Apart from making workers happy and motivated, it also contributes into rising inflationary pressure. Only time will tell how this increased minimum wage will play out.
FAQs
What is the Present Minimum Wage in Florida?
Ans: Florida minimum wage 2024 stands at $13 per hour. Every year on 30th Sep the minimum wage is increased in Florida.
What was the Florida Minimum Wage 2023?
Ans: The minimum wage in 2023 was $12 per hour which was enhanced from that of 2022.
Does Minimum Wage Florida Impact the Lives of Workers and Employees?
Ans: Yes, it helps the workers to meet the rising cost of living and improves their standard of living in the process.
What is the Minimum Wage in Florida 2024?
Ans: On 30th Sep, 2024, the minimum wage was increased to $13 per hour for the untipped employees and workers.
Is the Federal Minimum Wage Lower or Higher than the Minimum Wage in Florida?
Ans: The federal minimum wage is lower than that of Florida.
