U.S. Minimum Wage Rises in 2025: New Pay Rates Now in Effect from October 2

This is a relief year to millions of workers in Florida. The state is gradually working in the direction of achieving a minimum wage of 15 per hour. The plan will advance another step, as, beginning in October 2025, the minimum wage will increase once more. It should not be viewed as a surprise, but an amendment that was passed by the voters in 2020, and presented by lawyer John Morgan. With this amendment, the wage will go up by one dollar annually until it hits 15 per hour in 2026. Subsequently the inflation will be directly correlated to wage increments.

What will Florida’s new wage rate be in 2025?

Since 2021, Florida has been raising the minimum wage by one dollar yearly. On the same note, the minimum wage rate of non-tipped workers will go up to 14 hours per hour, starting on October 2, 2025.

Employees who receive minimum wages including tips like restaurant servers will have a basic pay of $9.98 raised to 10.98 per hour. The law however guarantees that they earn at least 14 per hour (base pay + tips) in total. In case of less tips in any given day, the employer will be obligated to cover the shortfall.

Why is Florida raising the minimum wage?

There are three main reasons behind the wage increase:

1. Legal requirement – ​​The $1 annual increase will continue until 2026, as per the law passed in 2020.
2. Rising cost of living – Rent, food, transportation, and healthcare are becoming increasingly expensive. Consequently, $13 per hour is no longer considered sufficient.
3. Protection of tipped employees – Service sector employees should not rely solely on customer tips. Their income is being protected by increasing the basic wage.

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Impact on employees and employers

Non-tipped employees

Starting October 2, 2025, every employee is guaranteed a minimum of $14 per hour. This means more money in their pockets, making daily expenses easier.

Tipped employees

These employees’ basic pay will now be $10.98 per hour. However, their overall income cannot fall below $14 per hour. If tips are low on any given day, the employer will have to cover the difference.

Update to Florida Minimum Wage Rates

What should employers do?

• Update your workplace wage posters.
• Implement the new wage by making changes to the payroll system.
• Clearly explain to tipped employees, especially those with disabilities, how their income will be calculated.

What should employees keep in mind?

• Check your payslips after October 2, 2025 to ensure you’re being paid correctly.
• If you’re a tipped worker, keep a record of your daily earnings. If your total earnings are less than $14 per hour, your employer will be required to cover the difference.

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What does this mean for Florida?

The Florida action is an effort to balance between the employees and employers. To the employees, this increment will be a relief to counter inflation in the cost of living. Meanwhile, it becomes difficult to employers to meet regulations, to run the payroll system effectively.

This scheme, in the long term, would make certain that all employees in the state, whether tipped or not, have at least a guaranteed income. This will not only enhance economic security but will enhance a sense of balance and fairness at the work place.

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