Florida’s minimum wage to increase in 2021 based on inflation
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Friday, October 30, 2020

Florida’s minimum wage to increase in 2021 based on inflation

By Payroll and Entitlements Editorial Staff

The minimum wage in Florida will increase to $8.65 per hour effective January 1, 2021, according to the Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research.

Tipped employees must be paid a direct hourly wage of at least $5.63 per hour effective January 1, 2021, in addition to tips. The direct hourly minimum wage plus tips must equal at least the state minimum wage for nontipped employees.

Florida law requires the Florida Department of Economic Opportunity to calculate the minimum wage rate each year, based on the percentage increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region for the 12-month period prior to September 1 (August 2019 to August 2020). The calculation for 2021 reflects a 1.07% change in the cost of living.

On November 2, 2004, Florida voters approved a constitutional amendment which created Florida’s minimum wage. Employers subject to the state minimum wage are required to prominently display a poster in a conspicuous and accessible place in each establishment where employees are present. The Department of Economic Opportunity has updated the minimum wage poster to reflect the increase for 2021, which is available in English, Spanish and Creole.

Election referendum. Florida voters will once again get to determine the state minimum wage in the upcoming November 2020 General Election. The initiative (Ballot No. 2), “Raising the Minimum Wage,” would raise the state minimum wage first to $10.00 per hour on September 30, 2021, and then by $1 each September 30 after that, to reach $15 per hour on September 30, 2026. After that, starting September 30, 2027, the minimum wage would once again be adjusted annually for inflation. The proposal would amend Section 24 to Article X of the Florida Constitution. (Florida Department of Economic Opportunity, Bureau of Workforce Statistics and Economic Research, 2021 Minimum Wage Calculations, October 2020).

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