By Ramsey Sullivan Riverbend News
In the November 2020 general election, the state of Florida passed a new minimum wage law. This law calls for a gradual increase of minimum wage from the current rate of $8.56 per hour to $15 per hour. As of Friday, Jan. 1, 2021, the minimum wage rate increase in Florida has officially begun by increasing nine cents, to $8.65 per hour.
The gradual increase will continue until minimum wage is equal to $15 per hour. On Sept. 30, 2021, the next increase will occur, moving minimum wage to $10 per hour. Employers need to be aware of the annual increase, triggered by Florida Statute 448.110, which will increase the minimum wage separate from Amendment 2.
Employers of tipped employees may count tips received as wages under the Florida minimum wage. The employer must pay the tipped employees a direct wage. The direct wage is calculated as equal to the minimum wage increase, $8.65, minus the tip credit for Florida of $3.02, or a direct hourly wage of $5.63 as of Jan. 1, 2021.
Both Florida's minimum wage rate and the direct hourly rate for tipped employees are higher than the federal rates, so Florida employees must be paid the higher rates. The minimum wage rate will increase $1 every year on Sept. 30 until the minimum wage rate in Florida reaches $15 on Sept. 30, 2026.