On September 30, 2021, Florida’s minimum wage will increase to $10.00 per hour. Every year thereafter, Florida’s minimum wage will continue to increase until it hits $15.00 per hour in the year 2026. Below is a schedule of the planned increases.
- September 30, 2021: $10 per hour.
- September 30, 2022: $11 per hour.
- September 30, 2023: $12 per hour.
- September 30, 2024: $13 per hour.
- September 30, 2025: $14 per hour.
- September 30, 2026: $15 per hour.
Beginning 2027, the minimum wage is scheduled to be adjusted annually for inflation.
Florida employers may take a tip credit equal to the difference between the minimum wage and the required cash wage. The minimum required cash wage for tipped employees will increase on September 30, 2021, to $6.98 per hour. Therefore, the maximum tip credit an employer can take will remain $3.02 per hour ($10.00 – $6.98 = $3.02). The required cash wage for tipped employees will continue to increase annually as follows:
- September 30, 2021: $6.98 per hour.
- September 30, 2022: $7.98 per hour.
- September 30, 2023: $8.98 per hour.
- September 30, 2024: $9.98 per hour.
- September 30, 2025: $10.98 per hour.
- September 30, 2026: $11.98 per hour.
A tip credit may be taken for a workweek only if an employee receives tips. If an employee’s tips for the workweek, combined with the employer’s cash wages, do not equal the state minimum hourly wage, the employer must make up the difference. In other words, if reported tips fall below the tip credit, the employer remains liable to pay wages for the difference between the credit taken and the tips received.
Please keep in mind that employers must provide the following information to a tipped employee prior to using a tip credit:
1.the amount of cash wage the employer is paying the tipped employee, which will be at least $6.98 per hour;
2. the additional amount claimed by the employer as a tip credit, which cannot exceed $3.02 (the difference between the minimum required cash wage of $6.98 and the minimum wage of $10.00);
3.that the tip credit claimed by the employer cannot exceed the amount of tips actually received by the tipped employee;
4. that all tips received by the tipped employee are to be retained by the employee except for a valid tip pooling arrangement; and
5. that the tip credit will not apply to any tipped employee unless the employee has been informed of these tip credit provisions.
Employers may provide oral or written notice to its tipped employees informing them of items 1-5 above, however, it is recommended that the notice be in writing.
Required Workplace Poster
Florida employers must prominently display a poster reflecting the current minimum wage in a conspicuous and accessible place in each establishment where such employees are employed. An updated poster has not been published by the Florida Department of Economic Opportunity, however, MBA will send it out once it becomes available.
Please do not hesitate to reach out to your Payroll Specialists with any questions or concerns.