Florida Minimum Wage Increase 2026: What Employers Need to Know

Effective September 30, 2026, Florida’s minimum wage is $15.00 per hour for standard hourly employees and $11.98 per hour for tipped employees. These rates stay in place through December 31, 2027.

This is the final step of the six-year schedule set by Amendment 2, which Florida voters approved in 2020. The rate applies to all hours worked in Florida, including by employees of companies based in other states.

Below is a complete employer guide to Florida’s minimum wage rules for 2026, 2027, and beyond.

Florida minimum wage rate history (2021 to 2028)

Florida’s minimum wage increased by $1.00 every September 30 from 2021 to 2026. With the $15.00 rate now in effect, the schedule switches from fixed dollar increases to annual inflation adjustments.

Florida minimum wage and tipped cash wage by effective date, 2021 to 2028:

The maximum tip credit has stayed fixed at $3.02 per hour throughout.

The federal minimum wage remains $7.25 per hour. When state and federal rates differ, employers must pay the higher one, so $15.00 per hour is the baseline for nonexempt Florida workers.

Will Florida’s minimum wage increase in 2027?

No. Florida’s minimum wage will not change in 2027. The $15.00 rate stays in effect from September 30, 2026, through December 31, 2027.

Many online payroll guides report another increase on September 30, 2027. That’s incorrect. Under Article X, Section 24 of the Florida Constitution, the state returns to its inflation adjustment model:

1. September 30, 2027: The Florida Department of Commerce calculates a new rate based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) over the prior 12 months.
2. By October 15, 2027: FloridaCommerce publishes the new rate.
3. January 1, 2028: The inflation-adjusted rate takes effect.

From then on, rates are calculated every September and take effect every January 1.

Tipped wages and overtime: how to do the math at $15/hr

Florida allows employers to claim a maximum tip credit of $3.02 per hour for eligible tipped employees under federal FLSA rules. Because the credit is fixed, the cash wage rises by the full $1.00 along with the minimum wage:

• Minimum wage: $15.00/hr
• Less maximum tip credit: $3.02
• Cash wage due: $11.98/hr

If a tipped employee’s cash wage plus tips doesn’t average at least $15.00 per hour for the workweek, the employer must pay the difference.

Calculating tipped overtime correctly

Florida doesn’t have a separate state overtime law, so overtime follows the federal Fair Labor Standards Act (FLSA): 1.5 times the regular rate for hours worked beyond 40 in a workweek.

Overtime for a tipped employee is calculated on the full $15.00 minimum wage, not the $11.98 cash wage.

Florida overtime rates for standard and tipped employees at the $15.00 minimum wage:

Calculating tipped overtime as $11.98 × 1.5 ($17.97/hr) underpays by $1.51 per overtime hour.

Florida minimum wage payroll checklist

September 30, 2026 fell on a Wednesday, so most pay periods that include that date need to be split. Use these six steps to stay compliant:

1. Pay by date worked. Minimum wage compliance is based on the date work was performed, not the date the paycheck is issued.
2. Split pay periods that include September 30. Hours worked through September 29 are paid at $14.00/hr ($10.98 tipped cash wage). Hours worked on or after September 30 are paid at $15.00/hr ($11.98 tipped).
   • Example: A biweekly paycheck with 36 hours worked Sept. 24 to 29 and 24 hours worked Sept. 30 to Oct. 7 equals (36 × $14.00 = $504.00) + (24 × $15.00 = $360.00) = $864.00 in gross wages. Read our guide on how pay periods work for more on pay period calculations.
3. Update overtime rates. Make sure your time tracking or payroll system calculates minimum wage overtime at $22.50/hr ($19.48/hr cash wage for tipped staff).
4. Display required posters. Download and display the official FloridaCommerce minimum wage poster in a conspicuous place at every work location. You must also display the federal U.S. Department of Labor FLSA poster.
5. Give tip credit notices. Employers using the tip credit must notify tipped employees of the $11.98 cash wage and $3.02 tip credit before applying the credit. After this year, provide the notice by January 1, 2028, and every January 1 after that, when new rates take effect.
6. Review wage compression. Check pay for employees earning between $15.00 and $17.00 per hour. Adjusting pay for longer-tenured staff keeps experience-based pay gaps in place.

Employer cost breakdown: wages and payroll tax impact

Moving a full-time employee from $14.00 to $15.00 per hour adds $2,080.00 in annual gross wages (40 hours/week × 52 weeks = 2,080 hours).

Employer FICA taxes (6.2% Social Security + 1.45% Medicare = 7.65%) add another $159.12 per year per employee.

Added annual cost of Florida’s $15.00 minimum wage by number of full-time employees:

Florida Reemployment Tax applies only to the first $7,000 of each employee’s annual wages, so the increase won’t raise it for most full-time staff.

How Florida’s minimum wage increase affects hourly workforces

The $15.00 rate applies statewide, but the operational impact depends on how you price work and staff shifts:

• Construction and specialty contractors: Fixed-price bids signed before September 30 were likely estimated at $14.00/hr labor. Review active jobs for margin loss and update job costing and labor tracking rates for new estimates. Under Florida HB 433, local governments also can’t require their contractors to pay living wages above the state minimum on contracts entered after September 30, 2026.
• Field services (HVAC, landscaping, cleaning, pest control): Recurring maintenance contracts often lock in pricing months in advance. Review upcoming renewals to make sure pricing covers $15.00 labor and overtime.
• Staffing agencies: Client bill rates need to rise with pay rates to protect margins. A $1.00 pay increase requires more than $1.00 in bill rate, since employer taxes and workers’ comp costs rise with wages.
• Businesses with tipped staff: The cash wage rises to $11.98 per hour, and tipped overtime to $19.48. On slow shifts, check that tips still bring every tipped employee to at least $15.00 per hour, since the employer covers any shortfall.

Penalties for noncompliance

Florida’s Constitution and Section 448.110 of the Florida Statutes set out these penalties for failing to pay the minimum wage:

1. 15-day written notice: Before filing a claim for unpaid minimum wages, an employee must give the employer written notice and 15 calendar days to pay the back wages.
2. Double back pay: If the claim isn’t resolved and the employee wins in court, the employer owes the back wages plus an equal amount in liquidated damages, plus attorney’s fees.
3. State fines: The state can bring enforcement actions and fine employers $1,000 per willful violation.
4. Extended lookback: Employees have four years to file a claim, or five years for willful violations.

This article is for general informational purposes only and isn’t legal or tax advice. Minimum wage rules can change. Confirm current requirements with FloridaCommerce or an employment attorney.

Rickie Mixon Rickie is the SEO and AI Manager at Fingercheck, where she tracks the evolving world of Payroll, HR tech and LLMs. A seasoned B2B SaaS strategist and a lifelong nerd, she's driven by an endless curiosity to understand how things work. Off the clock, she's usually sharing fun facts or walking her dogs.

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