On November 3, 2020, Floridians just barely approved (by .8%) an amendment to Florida’s constitution requiring the minimum wage to ultimately be raised to $15.00/hr. While the new minimum wage is phased in over time, it affects every business with employees in Florida.
1. When does the $15.00/hr minimum wage go into effect in Florida?
September 30, 2026. But between now and then, the following minimum wage increases occur:
$10.00/hr on September 30, 2021
$11.00/hr on September 30, 2022
$12.00/hr on September 30, 2023
$13.00/hr on September 30, 2024
$14.00/hr on September 30, 2025
Additional increases after 2026 are tied to the consumer price index for urban wage earners and clerical workers.
2. How is the new minimum wage amendment enacted?
Since 2003, Article X, Section 24 of the Florida Constitution has governed minimum wage in Florida. In fact, the provision states that no additional legislation is required for the minimum wage to be effective. The relevant text of the amendment to the Florida Constitution is as follows, with new language being underlined and removed language being crossed out:
MINIMUM WAGE. Employers shall pay Employees Wages no less than the Minimum Wage for all hours worked in Florida. Six months after enactment, the Minimum Wage shall be established at an hourly rate of $6.15. Effective September 30th, 2021, the existing state Minimum Wage shall increase to $10.00 per hour, and then increase each September 30th thereafter by $1.00 per hour, until the Minimum Wage reaches $15.00 per hour on September 30th, 2026. On September 30th of 2027 that year and on each following September 30th, the state Agency for Workforce Innovation shall calculate an adjusted Minimum Wage rate by increasing the current Minimum Wage rate by the rate of inflation during the twelve months prior to each September 1st using the consumer price index for urban wage earners and clerical workers, CPI-W, or a successor index as calculated by the United States Department of Labor. Each adjusted Minimum Wage rate calculated shall be published and take effect on the following January 1st. For tipped Employees meeting eligibility requirements for the tip credit under the FLSA, Employers may credit towards satisfaction of the Minimum Wage tips up to the amount of the allowable FLSA tip credit in 2003.
3. How will the new minimum wage requirements be enforced?
Because the amendment only modified an existing portion of the Florida Constitution, and does not require additional legislation, the new wage requirements will be governed in the same way as the current minimum wage. For employers concerned about employees bringing claims against them in the future, Florida’s Minimum Wage Statute requires that (1) employee notify employer in writing of his/her plan to bring a claim for violation of Florida’s Minimum Wage Statute and that he/she is requesting unpaid wages, the dates and hours of unpaid wages, and total amount owed by employer; and (2) employer has 15 days from time employee submits notice to pay the claim or settle the claim. If employer does not settle, brings claim and prevails, employer will be subject to liquidated damages. Employees have 4 years from date of violation to file claim and 5 years if the violation was willful
4. Can we lay off employees if we cannot afford to pay them the new wages?
Yes, but keep in mind that regulations governing layoffs, wages, and hours still apply, so if you have concerns that an employee might assert claims, you should consult an attorney. Further, Florida’s Minimum Wage Statute has an anti-retaliation provision that prevents employers from taking an adverse employment action against an employee for asserting rights under the statute.
5. Can we increase prices to account for these higher wages?
Yes, as long as prices for your industry are not otherwise regulated or capped by contract or other arrangement.