Minimum Wage Workers In Florida To Be Paid More For Their Labors

FLORIDA — Starting Saturday, minimum wage employees in Florida are now getting a bit more money for the work they've been hired to do.

As part of a voter-approved amendment raising Florida's minimum wage, the minimum wage went up by a dollar, effective Sept. 3o — from $11 to $12 an hour.

On Nov. 3, 2020, Florida voters approved Amendment 2, which amends Florida’s
constitution to gradually increase the state’s minimum wage to $15 an hour by the year 2026.

At the time of the vote, Florida's minimum wage was $8.65 an hour, well below a living income, according to Florida Policy Institute CEO Sadaf Knight.

The first minimum wage increase to $10 per hour in 2021 benefited approximately 600,000 workers in Florida, according to Knight.

“It is going to have a positive impact on our economy, especially as we think about people struggling to make ends meet with rising costs of living, inflation, and all that,” she said.

When the $15 minimum wage is fully in effect in 2026, Knight said it’s going to benefit more than one in four Floridians.

“It benefits workers in industries like retail and food service,” she said. “Industries that are heavily concentrated in Florida, and especially here in Central Florida.”

Knight said wage theft, the failure to pay workers what they are rightfully owed, is a problem in parts of Central Florida in jobs that tend to pay low wages.

“Before the minimum wage was passed, 15 percent of these workers were being paid less than the state minimum wage," she said.

Industries like hospitality, retail and food services tend to see more cases of wage theft, according to Knight. With so many theme parks and attractions, those types of industries are prevalent in Central Florida.

“We do see a pretty high concentration in counties like Osceola County, of course,” said Knight. “But in Central Florida overall, about 42 percent of workers fall under these industries.”

However, not everyone agrees that a minimum wage increase will benefit Florida.

A Florida TaxWatch Economic Commentary finds that a raise in the statewide minimum wage to ultimately $15 an hour would likely harm Florida businesses and the job market.

Florida TaxWatch estimated that businesses employing minimum wage workers in the state of Florida could see a nearly $2 billion increase in labor costs. The organization said this conservative estimate only accounts for workers currently making minimum wage. However, an increase of the minimum wage to $15 an hour would raise the cost of wages for nearly half of Florida’s workforce.

“Raising the minimum wage to $15 an hour, despite advocates’ good intentions, would hurt hard-working Floridians. Businesses will have to reconsider their business strategy by cutting hours or, worse, laying people off. This decision is not one any business owner wants to make but would be necessary to protect their business,” said Florida TaxWatch President and CEO Dominic M. Calabro. “Florida should watch the wage implementations in New York and California closely before taking action on a $15 an hour minimum wage.”

Many of Florida’s leaders are advocating for investments to train and educate a more skilled workforce rather than mandate a $ 15-an-hour wage. They argue that education and skills training will be more beneficial to workers and the economy than government intrusion into the labor market.

“Florida’s economy has recovered tremendously from the Great Recession because of the pro-Floridian policies that I and many of my colleagues have passed in the Florida Legislature," said U.S. Rep. Matt Gaetz, who represents Florida House District 4. "Lower taxes and less regulations have allowed the Sunshine State to thrive. We must seek alternative options, like education and career development, to ensure workers are able to receive wages based on their skills and experience, not a government-mandated number.”

"The best way to raise wages is by helping workers get the skills needed to compete in today's global economy. Arbitrarily raising wages by the government will decrease opportunities — especially for those looking to enter or re-enter the workforce," said Florida Chamber of Commerce Vice President of Public Affairs Edie Ousley. "Let's focus on helping workers improve their career path through training and education, boosting their earning potential."

“A drastic increase to a $15 an hour minimum wage would have a significant statewide impact that would harm Florida businesses. We understand the sentiment behind wanting to improve wages for Floridians but a leap from Florida’s current minimum wage to $15 an hour would severely damage the job market and hamper our state economy,” said Associated Industries of Florida President and CEO Tom Feeney.

"Immediately raising the minimum wage to $15 an hour would not only have detrimental effects on the economy, but also hurt those whom it was meant to help. Wage increases are usually enacted with good intentions but they often lead to lay-offs, cut hours and higher costs for goods and services,” said State Director for Americans for Prosperity Chris Hudson. “We commend Florida TaxWatch for bringing light to the negative effects that would occur with an immediate wage increase to $15 an hour."

To continue to turn a profit in a new business climate, companies would be forced to make difficult decisions regarding their staff, said TaxWatch. Many companies would cut staff hours and freeze hiring, or leave the state altogether. Others could invest in autonomous technologies like self-checkout kiosks or look to pass increased labor costs onto consumers by raising prices.

“Retailers only have a finite amount of money for employee salaries, so any dramatic increase in the minimum wage, especially one up to $15 an hour, would be detrimental to Florida’s retail industry, resulting in laying off hard-working employees, rising costs for businesses and increased prices for consumers,” said Florida Retail Federation President and CEO Randy Miller. “This would cause smaller businesses to close, killing competition and ultimately slowing down our state economy.”

"Small businesses are the backbone of Florida's economy, providing Floridians with hundreds of thousands of jobs. However, the push for a $15 an-hour wage will drive labor costs up and force owners to make difficult decisions regarding their businesses and their employees," said Florida Executive Director for the National Federation of Independent Business Bill Herrle. "Many of those employed at small businesses could see their hours cut or even a pink slip. Those currently unemployed could be further locked out of the job market. Artificially raised wages are detrimental for workers, small businesses and the state's economy."

However, the Southern Poverty Law Center said the wage increase would place Florida on a par with other states.

Prior to the bill's passage, Florida's $8.46 minimum wage was far below the minimum wages in areas like Washington, D.C., with a minimum wage of $14 an hour and Massachusetts, California and Washington, with a $12-an-hour minimum wage.

The center found that existing research on minimum wage increases points to favorable results for low-wage employees including improved productivity and overall well-being.

However, the Congressional Budget Office estimates that the $15 wage would lead to 1.3 million lost jobs nationwide by 2025.

Not so, said Ben Zipperer, an economist at the Economic Policy Institute. A 2019 study analyzed 138 state-level minimum wage increases over roughly four decades and found that the overall number of low-wage jobs remained essentially unchanged years after increases of varying degrees.

“Our research is able to tease out whether there are different effects from much larger minimum wage increases, and what we found is, after much larger minimum wage increases, you do see workers’ wages rise even more, but you also don’t see any kind of change in overall employment for low-wage workers,” said Zipperer, one of the authors of the study. “So even with larger increases, at least in our study sample, you don’t result in the kind of scare stories we often hear about minimum wages.”

Knight said the minimum wage increase is long overdue but it’s not necessarily what’s needed to live comfortably in Florida.

“Going up to $15 an hour actually puts Florida as one of the states in the South that has the highest minimum wage, which is great for Florida to be a leader in this area,” she said “But of course, that’s different than a living wage. What do people actually need to be able to really make ends meet and be able to achieve economic security?”

Between the high cost of living and inflation, Knight said a minimum wage is not enough.

“We should be thinking also about how to get people toward a living wage where they can actually be financially stable and sustainable,” she said.

As of Jan. 1, 2021, the minimum wage increased to $8.65 per hour as scheduled. On
Sept. 30, 2021, the minimum wage rose to $10 per hour ($1.35 per hour increase).

Every Sept. 30 thereafter, the minimum wage has increased $1 per hour, and that trend will continue through 2026.

• $12 on Sept. 30, 2023
• $13 on Sept. 30, 2024
• $14 on Sept. 30, 2025
• $15 on Sept. 30, 2026

Beginning 2027, the minimum wage will be adjusted annually for inflation, as it has been
since 2004.