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On January 1, 2021, Florida’s minimum wage rate increased from $8.56 per hour to $8.65 per hour. However, due to Amendment 2, passed by constitutional referendum in 2020, on September 30, 2021, Florida’s minimum wage will rise again — from $8.65 to $10 per hour. The minimum wage will then increase $1 each year until it reaches $15 per hour on September 30, 2026. Starting September 30, 2027, Florida’s minimum wage rate will be adjusted annually for inflation.
For “tipped employees” who meet eligibility requirements for the tip credit under the federal Fair Labor Standards Act (FLSA), employers may take a “tip credit” of up to $3.02 per hour for tips received by their employees. This means that from January 1, 2021, until the second minimum wage increase in September, the direct hourly wage for tipped employees in Florida is $5.63 (the 2021 Florida minimum wage rate ($8.65) minus the federal tip credit ($3.02)). Once the minimum wage is raised to $10 per hour, the direct wage to tipped employees will be $6.98. Both Florida’s minimum wage rate and the direct hourly wage rate for tipped employees are higher than the federal rates, so Florida employers must pay employees the higher Florida rates.
If employers have not already done so, they should make appropriate pay adjustments for the January 2021 minimum wage increase and schedule a reminder that later this year, there will be a second increase. Employers who must pay their employees the Florida minimum wage must post a notice of the state minimum wage requirement (besides posting a notice as required by the FLSA) in a conspicuous and accessible location. The current Florida notice is available at floridajobs.org.
Jennifer Fowler-Hermes is a board certified labor and employment attorney with Williams Parker. She can be contacted at [email protected] or (941) 552-2558.
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