The state minimum wage in Florida is set to increase on September 30th, from $12 an hour to $13. The bump is part of a voter-approved policy that will Florida adopt a $15 minimum wage, increasing by one dollar a year until it reaches that mark.
The minimum wage at the time the increase was passed was a mere $8.65, which leapt to $10 in 2021. In 2026 it will finally reach the $15 mark that voters approved. In 2028 the minimum wage will resume rising, indexed to changes in the Consumer Price Index.
Workers in positions that receive tips will also see a bump, with them earning $9.98 an hour minimum as of September 30th. They’ll also have wage increases annually until they reach $11.98 in 2026. Legally, employers can pay tipped workers at a lower rate than the normal state or federal minimum (whichever is higher), but only to the degree that their tips make up the difference to the standard minimum wage. If a tipped employee theoretically accrued zero tips during an hour worked, it would be the employer’s obligation to ensure they’re making the minimum wage.
Adjusted for inflation, Floridians will have a higher spending power under the new minimum wage than they have under previous numbers. The increase in value of the minimum wage from 2014 to 2013 substantially outpaces the increase from 2004 to 2014:
- 2024 – $13.00 ($13.00 in 2024 dollars)
- 2014 – $7.25 ($9.64 in 2024 dollars)
- 2004 – $5.15 ($8.58 in 2024 dollars)
The increased wage measure was passed hoping to address rising costs of living in Florida that have been prevalent since that 2020 ballot initiative. Housing costs, both rent and home prices, have risen sharply as have other costs like groceries and gas. Florida has seen some of the highest price hikes in the nation in some of the areas.
Opponents of minimum wage increases like Florida’s have posited that they may lead to price increases, greater strain on small businesses, and increased competition for minimum-wage jobs. Economists are divided on whether the pros outweigh the cons in upping the minimum wage. While wages and inflation have risen roughly alongside one another in the United States since 2020, other factors like global conflicts, supply chain issues, and corporate pricing strategy introduce uncertainty as to the degree of causation between any two aspects of the phenomenon. Some of the largest-scale corporations have seen consistently rising profits, which usually don’t match the price increases they’ve enacted, which are more often indicative of economic recession.
TR
September 19, 2024 at 6:54 am
What good is it when the administration does thing to the economy that raises the cost of everything much higher. Just look at today’s world. $13.00 an hour is hard to raise a family on especially with a mortgage, insurance, gas, food utilities, etc.