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Understanding the Florida Minimum Wage Increase: What You Need to Know

  • Writer: RND Solutions
    RND Solutions
  • Sep 25
  • 3 min read

Updated: Oct 6

Florida Minimum Wage Increase is Here


The Florida minimum wage increase will officially take effect on September 30, 2025, raising the state’s hourly minimum from $13 to $14. This change is part of a phased schedule under the 2020 voter-approved Amendment 2. The goal is to gradually reach $15 per hour by 2026.


In this article, I will cover what this increase means for workers, tipped employees, and businesses across Florida. I will also share how you can prepare for these changes.


Why is the Florida Minimum Wage Increasing?


In November 2020, Floridians approved Amendment 2. This constitutional amendment mandates annual $1 increases until the minimum wage reaches $15 in 2026. After that, adjustments will be made based on inflation.


The Scheduled Increases


  • 2021: $10/hour

  • 2022: $11/hour

  • 2023: $12/hour

  • 2024: $13/hour

  • 2025: $14/hour

  • 2026: $15/hour (then tied to inflation)


This Florida minimum wage increase is not unexpected. It follows a well-defined plan that gives businesses time to prepare.


Florida Minimum Wage Increase: Key Changes in 2025


Worker Category

Current Rate (2025)

New Rate (Sept 30, 2025)

General Minimum Wage

$13.00/hr

$14.00/hr

Tipped Minimum Wage

$9.98/hr

$10.98/hr

Tip Credit

$3.02

Remains $3.02


Important for Employers:

  • All businesses must update their workplace minimum wage posters.

  • Payroll systems and HR processes must be adjusted by the effective date.

  • Tipped employees must still receive total compensation at or above the new minimum when tips are included.


Who Benefits from the Florida Minimum Wage Increase?


Employees

  • Workers currently at or near minimum wage will receive a direct raise.

  • Tipped workers in restaurants and hospitality will also benefit from a higher base wage.

  • Improved earnings can lead to stronger local consumer spending.


Employers

  • Businesses face higher labor costs, especially in industries like food service, retail, and hospitality.

  • Some may respond with price increases, reduced hours, or automation.

  • Compliance is critical to avoid penalties or legal issues.


Florida’s Economy

  • The Florida minimum wage increase could fuel consumer spending by boosting lower-income workers’ purchasing power.

  • On the other hand, small businesses may feel financial strain as costs rise.


How Employers Should Prepare for the Florida Minimum Wage Increase


  1. Update Payroll Systems – Ensure hourly rates reflect the new $14 requirement.

  2. Review Tipped Employee Pay – Confirm tipped workers receive at least $10.98/hour before tips.

  3. Revise Budgets – Plan for higher labor costs in financial forecasts.

  4. Communicate With Staff – Share updates with employees and post required wage notices.

  5. Optimize Operations – Consider cross-training, automation, or improved scheduling to offset costs.


Florida Minimum Wage Increase: What Employees Should Do


  • Know Your Rights – All non-exempt employees are entitled to at least $14/hour.

  • Check Paystubs – Verify that your employer applies the correct wage after Sept. 30.

  • Tipped Workers – Ensure base pay plus tips equals or exceeds the $14 minimum.

  • Look for Posters – Employers must display the updated state minimum wage poster in the workplace.


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What the $14 Florida Minimum Wage Means


The Florida minimum wage increase to $14 on September 30, 2025, represents a significant step toward the $15 target set for 2026. For workers, it means higher pay. For employers, it means new costs and compliance obligations.


As Florida moves toward $15 per hour, businesses and employees alike should plan ahead. The increase is not only a legal requirement — it’s also a sign of broader shifts in labor markets and living standards across the state.


Preparing for the Future


Understanding the Impact


The upcoming wage increase will affect many aspects of business operations. It's essential to understand how these changes will impact your financial planning and employee relations.


Actionable Steps for Businesses


  • Conduct Training: Ensure your management team understands the new wage laws.

  • Adjust Pricing Strategies: Consider how the wage increase will affect your pricing.

  • Evaluate Staffing Needs: Determine if you need to adjust your workforce to manage increased costs.


Supporting Your Employees


As a business, supporting your employees during this transition is crucial. Open communication can help ease concerns and foster a positive work environment.


Conclusion


The Florida minimum wage increase is a significant change that will impact both employees and employers. By staying informed and proactive, you can navigate these changes effectively. Remember, this increase is not just about compliance; it's an opportunity to invest in your workforce and contribute to a thriving economy.

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