The issue of wage increases in the United States has always been a topic of discussion for both employees and employers. Now, there’s news for employees in Florida. Effective September 30, 2025, the state’s minimum wage will increase from $13 to $14 per hour. This increase is part of Florida’s plan to reach $15 by 2026. This change means employees will have some relief in managing rising living costs, such as rent, groceries, and transportation.
Overview of the US Minimum Wage Increase in 2025
The 2025 minimum wage increase in Florida is part of a planned process approved in 2020. Under this plan, wages increase by $1 each year to reach the target of $15 per hour by 2026. After that, the wage rate will be adjusted annually according to inflation.
This year, the minimum wage for non-tipped employees will be $14 per hour. Meanwhile, the base pay for tipped employees will be $10.98, but their total earnings must equal $14 per hour. If tips are not met, the employer is legally required to make up the difference.
Details of the Florida Minimum Wage Increase
| Category | Current Rate (2024) | New Rate (Effective Sept 30, 2025) | Notes |
|---|---|---|---|
| Standard Minimum Wage | $13.00/hour | $14.00/hour | Applies to most non-tipped employees |
| Tipped Employees (Base Pay) | $9.98/hour | $10.98/hour | Total must equal $14/hour with tips included |
| Target by 2026 | $14.00/hour | $15.00/hour | Final step in constitutional amendment plan |
| Future Adjustments | — | Based on inflation (from 2027) | Yearly review tied to cost of living |
Why is the minimum wage being raised in Florida?
There are several reasons behind this policy:
- Legal Requirement: Under a constitutional amendment passed in 2020, Florida is required to increase the minimum wage by $1 each year.
- Increasing Cost of Living: Rent, food, and fuel prices are rising, so employees require higher wages.
- Protecting Tipped Employees: Increasing base pay ensures that service employees do not earn less than the minimum wage.
This approach maintains a balance between employee needs and economic realities.
Impact on Employees and Employers
Employees:
- For non-tipped employees, higher earnings at $14 per hour will make it easier to manage everyday expenses and financial responsibilities.
- Tipped employees will gain stability, as total earnings will equal a minimum of $14 per hour.
Employers:
- Payroll costs will increase due to higher wages.
- But employee satisfaction, lower turnover, and higher morale will also bring benefits.
Preparations for Employers
- Update official posters with the new pay rates.
- Make changes to the payroll system.
- Clearly delineate base pay and tips for tipped employees.
Preparations for Employees
- Check pay stubs after September 30th and ensure the new wages are recorded correctly.
- Tipped employees should track their total earnings.
- Report any discrepancies or shortfalls.
Phased Path to $15 per Hour
- $1 increase each year from 2021 to 2025.
- Final increase to $15 per hour in 2026.
- Annual adjustments based on inflation starting in 2027.
This plan balances providing more income to employees and giving employers time to manage payroll.
Conclusion
The US minimum wage increase in Florida provides security and financial stability for employees. For employers, it presents both a challenge and an opportunity to increase employee trust and satisfaction.
For employees, it provides a strong safety net, and for employers, it provides an opportunity to retain employees by complying with the law.
FAQs
Q. When will the new minimum wage take effect in Florida?
A. The new rate of $14/hour for non-tipped workers starts on September 30, 2025.
Q. What is the minimum wage for tipped employees?
A. Tipped employees will have a base pay of $10.98/hour, but total earnings including tips must equal $14/hour.
Q. When will Florida reach the $15 minimum wage goal?
A. The $15/hour goal is expected to be reached by September 30, 2026.
Q. Will the minimum wage adjust after 2026?
A. Yes, starting in 2027, wages will be adjusted annually based on inflation and cost of living.
Q. How should employers prepare for the new wage rates?
A. Employers should update payroll systems, post the new rates at workplaces, and ensure tipped employees meet the total $14/hour requirement.
