Minimum wage increases have been a hot topic of debate for years as the cost of living rises, but wages stay the same. In Florida, many workers have eagerly awaited these wage increases to help make ends meet.
The good news is that on September 30, 2024, the minimum wage will increase to $13 per hour. This change is part of a larger plan to raise the minimum wage to $15 per hour by 2026. Let’s dive deeper into what this means for Florida workers and the impact it will have.
New Minimum Wage in Florida
Initial Increase in 2024
Starting on September 30, 2024, the minimum wage in Florida will rise from $12 to $13 per hour. This increase marks the beginning of a phased plan to reach a $15 per hour minimum wage by 2026. The plan is structured to give workers more financial security as living costs continue to rise.
The Plan for Future Increases
Florida’s plan for wage increases follows a clear timeline:
- 2024: $13 per hour
- 2025: $14 per hour
- 2026: $15 per hour
These gradual raises are designed to help workers transition to higher wages while allowing businesses time to adjust.
Federal vs. State Minimum Wage
The Federal Minimum Wage Stagnation
The federal minimum wage has been stuck at $7.25 per hour since 2009. In comparison, many states, including Florida, have decided to take matters into their own hands by raising their minimum wages to better reflect the rising cost of living.
Florida’s Unique Situation
Florida, known for its bustling tourism industry and large Latino population, requires higher wages to support workers, particularly in low-paying jobs such as those in the hospitality sector. The new wage increases aim to provide better financial security for these workers, who often face long hours and demanding work environments.
Tipped Employees and Wage Adjustments
Different Wage Scales for Tipped Workers
Tipped workers, like servers and bartenders, have a separate wage scale from non-tipped workers. While they will see wage increases, their base pay remains lower because they also receive tips. Here’s how their wages will change over the next few years:
- 2024: $9.98 per hour
- 2025: $10.98 per hour
- 2026: $11.98 per hour
This gradual increase ensures that tipped workers also benefit from the rising minimum wage.
Future of Minimum Wage in Florida
Tying Wages to Inflation
After reaching $15 per hour in 2026, the minimum wage will be frozen for 2027. Starting in 2028, Florida plans to tie the minimum wage to the Consumer Price Index (CPI), meaning wages will adjust automatically based on inflation.
This ensures that workers’ pay keeps up with the cost of living, helping them maintain their purchasing power over time.
The upcoming increases in Florida’s minimum wage are a significant step toward improving the lives of many workers, especially those in low-paying industries like tourism and hospitality. By raising the minimum wage gradually and tying future increases to inflation,
Florida aims to provide long-term financial stability for its residents. These changes will be particularly beneficial to the Latino community,
which makes up a large portion of the workforce. With the promise of higher wages, workers in Florida can look forward to better supporting themselves and their families.
When will the new minimum wage take effect?
The new minimum wage of $13 per hour will take effect on September 30, 2024.
What is the plan for future minimum wage increases?
The minimum wage will rise to $14 per hour in 2025 and to $15 per hour by 2026.
How will the minimum wage be adjusted after 2026?
Starting in 2028, Florida will tie the minimum wage to the Consumer Price Index (CPI), meaning wages will adjust automatically with inflation.
What about tipped employees? How will their wages change?
Tipped employees will also see increases, with their wages rising to $9.98 per hour in 2024, $10.98 per hour in 2025, and $11.98 per hour in 2026.
Why is Florida raising its minimum wage?
Florida is raising its minimum wage to help workers better manage the rising cost of living, particularly in low-paying industries like hospitality and tourism.
