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Payday HR / Topic  / HR  / Florida Raises Minimum Wage to $14 on September 30: What Employers Need to Know

Florida Raises Minimum Wage to $14 on September 30: What Employers Need to Know

Florida minimum wage 2025 changes are now in effect — every employer with hourly workers needs to understand what this means for payroll and compliance.

Florida minimum wage 2025 changes are now in effect — and every employer with hourly workers needs to understand what this means for their payroll and compliance obligations.

Starting September 30, 2025, Florida’s minimum wage for non-tipped employees will climb from $13.00 to $14.00 per hour, marking the latest step in a voter-mandated schedule that brings the state to $15.00 by 2026.

For tipped workers, the new cash wage minimum will increase to $10.98 per hour, but the combined total of tips plus base pay must still meet the $14 rate.

Why This Matters Now (and What’s Behind It)

The change is not a surprise — it’s part of Amendment 2, the constitutional ballot measure Florida voters approved in 2020 that requires $1 annual increases until the $15 threshold is reached in September 2026 

What’s new with this bump:

  • After 2026, minimum wage increases will be tied to inflation, not fixed dollar steps.
  • Employers must update payroll systems, wage tables, and compliance posters ahead of the change.
  • Some business groups have warned the steep year-over-year increases could squeeze margins — especially in low-margin industries.

What Businesses Should Do Right Now

  1. Audit current wage and tip structures
    Ensure your tipped employee compensation models comply with the new floor of $10.98 base plus tips. 

If tips fall short, you must “make up” the difference.

  1. Adjust payroll & HR software

Prepare your systems now — test the switch, validate employee classifications, and ensure accurate rate application on or after September 30.

  1. Communicate with your team
    Let affected employees know how this will affect their paychecks, especially tipped staff, and reassure them of your commitment to compliance.
  2. Review cost pressures
    Analyze how this increase may affect budgeting, pricing, staffing levels, or overtime policies for your business.
  3. Keep an eye on legislative tweaks
    There are ongoing proposals (e.g. SB 676 / HB 541) to carve out exemptions for internships, apprenticeships, or “training” roles — meaning some employees may be excluded from the full minimum wage rules under certain circumstances.

The Big Picture: Transition, Not Shock

This $14 wage level is not a sudden shift — it’s part of a pre-approved, incremental path voters sanctioned years ago.

While it will require operational work for businesses, the change is predictable.

If you act ahead — audit, communicate, update systems — the transition can be smooth. The real risk lies in surprise noncompliance or missteps on tipped wage rules.

Related reading: Exempt vs. Non-Exempt Employee: Why Salary Alone Doesn’t Tell the Full Story | DOL Increases Overtime Salary Exemption By 50%

Jerold Hall

Jerold Hall, MBA, is a Revenue Executive at Payday HR and a leading voice in PEO education for small businesses. With nearly twenty years of experience in helping hundreds of small businesses grow and scale through PEO partnerships, he specializes in PEO strategy, workforce cost analysis, and consultative sales leadership, and is the architect behind Payday HR’s transparent, trust-based education approach. Jerold works directly with business owners to simplify HR, reduce risk, and help them refocus on growing their business.