Durrant Pate/Contributor

Workers across Florida are set to see another rise in their pay as the state continues its step-by-step journey towards a US$15 minimum wage.

This change, approved by voters back in 2020 through a constitutional amendment led by attorney John Morgan, ensures that every October 05, the minimum wage increases by one dollar until it reaches the US$15 mark in 2026.

Florida’s incremental wage hike is designed to balance the needs of workers and businesses while moving towards a US$15 per hour standard. After that, wages will be adjusted every year based on inflation.

Minimum wage hike, explained…

Since 2021, the state has augmented the hourly wage each year by a dollar, and, as of October 05, the minimum wage for most workers will now rise from US$13 to US$14 per hour.

For tipped employees, like restaurant servers, the base pay goes up from US$9.98 to US$10.98 per hour. However, tips plus base pay must equal at least US$14 per hour. If tips fall short, the employer has to cover the gap.

There are several reasons behind this steady rise:

• Legal compliance: Florida law now requires annual increases until the US$15 target is reached.
• Cost of living: With inflation and higher prices for food, rent, and transport, US$13/hour no longer stretches far enough.
• Fairness for tipped workers: The rise in base pay makes sure those relying on tips are not left behind.

Impact on workers and employers

• Workers without tips: From October 05, they will earn at least US$14 an hour, giving them more money to handle everyday expenses like groceries, utilities, and housing.
• Tipped employees: Their base wage moves to US$10.98, but their overall earnings (base plus tips) must total at least $14 per hour. Employers must fill the gap if tips are insufficient.

How employers should prepare

• Update minimum wage posters in the workplace.
• Adjust payroll systems to match the new rates.
• Clearly show tipped staff how their pay is split between base pay and tips.

How employees should prepare

• Review pay stubs after October 05 to confirm the new rate.
• If you’re a tipped worker, keep track of your earnings and ensure your employer meets the legal minimum.