Minimum wages are constantly being revised in many US states. These changes are not just part of the law, but directly impact the economic situation, standard of living, and future of millions of workers. Florida is a prime example, where a Constitutional Amendment passed in 2020 aimed to gradually increase the minimum wage to $15 per hour by 2026. Now, starting October 5, 2025, Florida’s minimum wage is set to increase again, providing relief to millions of workers.
This change will not only increase the income of ordinary employees, but will also directly benefit tip-dependent workers (such as restaurant servers, hotel staff, etc.). Let’s understand in detail why this change is taking place, the need for it, its impact on employees and employers, and the way forward.
Florida’s Minimum Wage Law: Background

In 2020, the people of Florida made a historic decision through voting. This campaign, led by attorney John Morgan, led to an amendment to the state constitution. It mandated that the minimum wage be raised by $1 per hour every year on October 5th until it reaches $15 per hour by 2026.
- Beginning in 2021: Following the enactment of this law, the minimum wage will be raised by $1 every year starting in 2021.
- Change in 2025: This wage will increase from $13 to $14 per hour starting this year, October 5th, 2025.
- 2026 Target: The wage will increase for the final time next year, in 2026, to $15 per hour. After that, it will be adjusted for inflation.
New Change for Tipped Workers
Florida has a large number of employees who depend on tips for a significant portion of their income. This primarily covers employees in the restaurant, hotel, bar, and hospitality sectors.
- Early October 5, 2025, their base pay will increase from $9.98 to $10.98 per hour.
- However, their total earnings (base pay plus tips) must be at least $14 per hour.
- If tips are low on any given day or shift, and the total earnings don’t reach $14 per hour, the employer must cover the difference.
This rule ensures that no employee is deprived of the minimum wage solely because of low tips.
Reasons for Raising the Minimum Wage
Why did the Florida government and people decide to raise the minimum wage? There are several compelling reasons:
1. Legal Compliance
Following an amendment passed in 2020, it has become Florida law that the minimum wage will increase by $1 per year. Therefore, both the government and employers are required to comply.
2. Rising Cost of Living
Inflation is constantly rising today. Food, rent, transportation, healthcare, and other essential items have become more expensive. In such a situation, $13 per hour is no longer sufficient. Therefore, raising wages is the need of the hour.
3. Justice for Tipped Workers
Employees who rely on tips often lack a stable income. The new law ensures that their basic income is protected and they receive equal pay with other workers.
Impact on Workers
Workers without Tips
Starting October 5, 2025, all workers who do not rely on tips will receive a flat $14 per hour. This means they will now have more support to cover daily expenses such as rent, electricity, water bills, children’s education, and medical expenses.
Tipped Workers
The base pay of employees such as restaurant servers, hotel staff, and bartenders will increase to $10.98 per hour. Overall, the minimum wage is set to be $14 per hour. Even if tips are reduced, employers will still have to make up for this shortfall.
Impact on Employers
This change is important not only for employees but also for employers. They need to be prepared for these changes in advance.
- Update Minimum Wage Posters—Minimum Wage Posters posted at workplaces will need to be updated to reflect the new rate.
- Adjust Payroll Systems—Payroll systems will need to be updated to reflect the new wage rate so that employees receive fair wages.
- Clarity for Tipped Staff—Employers must clearly explain to their tipped employees how their income is divided—between base pay and tips.
What should employees do?
1. Check payslips
After October 5, 2025, carefully review your pay stub. Ensure your wages are not below the new minimum rate.
2. Tipped workers should monitor their pay.
If you rely on tips, calculate your tips + base pay. If it’s less than $14 per hour, notify your employer immediately.
3. Know your legal rights.
You can learn about your rights and the process for filing a complaint by visiting the Florida Department of Labor’s website.
What will happen after 2026?
By 2026, when the minimum wage reaches $15 per hour, the wage will be adjusted annually based on inflation. This means that if inflation increases, the minimum wage will also increase. This will ensure that employees’ earnings do not decrease over time.
Conclusion
This change in the minimum wage in Florida, effective October 5, 2025, will bring relief to millions of workers. This is not just a matter of increasing income but also an effort to improve living standards and combat inflation.
While employees will be happy with this, employers will also have to adjust their strategies. In the long run, this move could prove to be a major step towards a balanced economy and a fair labor system.
FAQs
Q. What will be Florida’s new minimum wage from October 5, 2025?
A. From October 5, 2025, the minimum wage will rise from $13 to $14 per hour.
Q. What is the new base pay for tipped employees?
A. Tipped workers will get $10.98 per hour as base pay, and their total pay (base + tips) must equal at least $14 per hour.
Q. When will the minimum wage reach $15 in Florida?
A. Florida’s minimum wage will reach $15 per hour by October 2026.
Q. What should employers do to comply with the new wage law?
A. Employers must update workplace posters, adjust payroll systems, and ensure tipped workers’ earnings meet the legal minimum.
Q. How can employees make sure they are paid correctly?
A. Employees should review their pay stubs after October 5, 2025, and tipped workers should track tips to confirm they receive at least $14 per hour.