Florida minimum wage increasing to $12 an hour; living wage unchanged

What is minimum wage in FL?

The minimum wage went to $10 an hour on Sept. 30, 2021, and $11 on Sept. 30, 2022. Voters in 2020 approved the constitutional amendment, which was spearheaded by prominent Orlando lawyer John Morgan. Keeping track of these mandatory and voluntary withholdings can become a hassle. Hourly payroll software automatically calculates payroll deductions and workers’ comp expenses to make your life easier. She says she’s always trying to save a bit to treat her grandchildren – she has custody of three of them – who are constantly growing out of clothes and shoes. And although she marched alongside fellow SEIU members to win the wage increase, she is fearful of the downside.

  • Employers must provide employees with pay stubs that include their name, address, employer’s name and address, date of pay, hours worked, pay rate, gross earnings, deductions, and net pay.
  • Employers subject to the Fair Labor Standards Act must pay the current Federal minimum wage of $7.25 per hour.
  • An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law.
  • Several fast-food executives have suggested prices would go up 2.5% to 3.5% to offset higher wages; Jack in the Box, Starbucks, McDonald’s and Chipotle have all warned of upcoming price hikes.

All this makes California’s wage hike a high-profile case study for how exactly a higher minimum wage reverberates through the local economy. In recent years, the battle for higher minimum wages has minimum wages increasingly played out at the city, county and state levels as the federal minimum wallows at $7.25 an hour. Her restaurants lost shoppers after a pre-emptive price increase in February, she says.

California fast-food workers will get $20 minimum wage, starting Monday

Additional communications will be forthcoming as we continue to evaluate future impact to the University’s salaried pay structure. All employees making less than $10 an hour as of September 30, 2021, will be systematically increased in OMNI HR. Please use this notification as an opportunity to plan budgets accordingly. Florida doesn’t have a state income tax, but you still need to withhold a portion of each employee’s wages for federal income tax and FICA taxes (Medicare and Social Security taxes). You may have heard that Florida’s minimum wage is going up to $15 per hour, and that’s true. On every September 30, the minimum wage will be increased by a certain percentage till 2026, as shown in the table above.

In addition to the exemption for federally covered employment, the law exempts, among others, employees of a retail or service business with gross annual sales or business done of less than $500,000. An employee earning a guaranteed monthly compensation of $2,000 or more is exempt from the State minimum wage and overtime law. Under a voluntary flexible work hour plan approved by the Alaska Department of Labor, a 10 hour day, 40 hour workweek may be instituted with premium pay after 10 hours a day. Employers must provide employees with pay stubs that include their name, address, employer’s name and address, date of pay, hours worked, pay rate, gross earnings, deductions, and net pay. Here’s a comprehensive overview of additional Florida wage laws that employers need to consider. By understanding and complying with these laws, employers can ensure fair treatment of their employees, protect themselves from legal claims, and maintain a positive reputation in the workplace.

New $20 minimum wage kicks in for most fast food workers in California

Firstly, Florida adheres to federal overtime regulations outlined in the Fair Labor Standards Act (FLSA). This means that employers must provide overtime pay to all non-exempt employees who work more than 40 hours in a seven-day workweek. Employers must accurately calculate and pay overtime wages to eligible employees to avoid legal repercussions.

“Do not let any calamity-howling executive with an income of $1,000 a day, …tell you…that a wage of $11 a week is going to have a disastrous effect on all American industry,” he said. For other questions about employers’ compliance regarding minimum wage, it is best to seek legal advice from any tax professional or tax attorney. Every year, on September 30, the minimum wage will increase by $1.00 per hour until, by September 30, 2026, the minimum wage will be $15.00 per hour. And that’s what’s leading to the lower wages on average in Florida and South Florida in comparison to national figures,” Ilcheva said. “I just checked that earlier today and in August, only about 2% of job postings are actually $12 or less. And the labor shortages have caused wages to rise, both in terms of average and median wages as well as what’s being offered by employers,” she said.

Do minimum wage laws in Florida apply to all employers?

In restaurants and hotel restaurants, for the 7th consecutive day of work, premium pay is required at time and one half the minimum rate. President Franklin D. Roosevelt who pushed for its establishment with the Fair Labor Standards Act (FLSA) of 1938. The FLSA banned oppressive child labor, set the minimum hourly wage at 25 cents and capped the maximum workweek at 44 hours. Previous attempts to set a minimum wage were blocked by the Supreme Court in 1935. Finally, employers must maintain accurate records of employee hours worked, pay rates, earnings, deductions, and pay stubs.

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