Florida employers have another wage change approaching.
Effective September 30, 2026, Florida’s minimum wage increases from $14.00 to $15.00 per hour. For eligible tipped employees, the minimum direct cash wage increases from $10.98 to $11.98 per hour, with Florida continuing to permit a tip credit of up to $3.02.
For employers, particularly those in hospitality, restaurants, retail and other industries with hourly or tipped employees, now is the time to make sure pay rates, payroll settings and required workplace notices are ready for the change.
Florida has two minimum wage rates during 2026:
| Effective Date | Florida Minimum Wage | Minimum Direct Wage for Eligible Tipped Employees |
|---|---|---|
| Through September 29, 2026 | $14.00/hour | $10.98/hour |
| Beginning September 30, 2026 | $15.00/hour | $11.98/hour |
The September 30 increase is the final scheduled $1 increase established by Florida’s 2020 constitutional amendment.
Florida’s $15 minimum wage takes effect September 30, 2026.
The increase is part of the constitutional amendment approved by Florida voters in 2020. The amendment established a series of annual increases that moved Florida's minimum wage from $8.56 in 2020 to $10 in 2021, followed by $1 increases each September 30 until the rate reaches $15 in 2026.
That effective date is important for payroll teams because the change does not wait until January 1, 2027.
Employers with pay periods that include September 30 should make sure the appropriate rate is applied based on when the work was performed.
Beginning September 30, 2026, Florida employers that qualify to take a tip credit may pay eligible tipped employees a minimum direct cash wage of $11.98 per hour, provided applicable tip-credit requirements are satisfied.
The calculation is:
$15.00 Florida minimum wage - $3.02 maximum tip credit = $11.98 minimum direct wage
Through September 29, the minimum direct wage is $10.98 based on Florida's current $14 minimum wage. The U.S. Department of Labor's state tipped-wage table confirms Florida's $3.02 maximum tip credit and the scheduled September 30 increase to $15.
This makes the change particularly important for restaurants, hotels and other hospitality employers with tipped employees.
CTR's Hospitality & Restaurant Payroll and HR Solutions are designed to support employers managing tips, multiple pay rates, shift-based payroll and wage-and-hour requirements.
No.
Employers need to satisfy applicable tip-credit requirements before taking a tip credit.
Under the federal Fair Labor Standards Act (FLSA), a tipped employee is generally an employee who customarily and regularly receives more than $30 per month in tips. Employers taking a tip credit must also provide required information to tipped employees and ensure the applicable minimum wage requirements are met.
The U.S. Department of Labor also makes clear that employers, including managers and supervisors, may not keep employees' tips. There are additional requirements surrounding tip pooling and which employees may participate.
Employers with tipped employees should review the U.S. Department of Labor's Fact Sheet #15: Tipped Employees Under the FLSA for additional federal guidance.
Because state and federal wage requirements can overlap, employers should review their tipped-employee practices rather than treating September 30 as simply a rate change in payroll.
The most obvious employees to review are those currently earning:
But employers may want to look beyond employees who are legally required to receive an increase.
A minimum wage increase can also create wage compression.
For example, suppose an entry-level employee currently earns $14 per hour while a more experienced employee earns $15.25.
Beginning September 30, the entry-level employee must move to at least $15 per hour, leaving only a 25-cent difference between the two positions.
The minimum wage increase does not itself require an employer to maintain an existing wage differential between positions. However, employers may want to consider whether the new rate affects established pay ranges, starting wages or internal compensation structures.
That makes the September 30 change both a payroll issue and a compensation-planning issue.
For some employees, yes.
Under the FLSA, covered nonexempt employees generally must receive overtime pay of at least one and one-half times their regular rate of pay for hours worked over 40 in a workweek.
If an employee's regular hourly rate increases because of Florida's new minimum wage, the employee's overtime pay based on that regular rate will increase as well.
For a straightforward employee whose regular rate is exactly $15.00 per hour:
$15.00 × 1.5 = $22.50 per hour
Keep in mind that an employee's FLSA regular rate can include more than the employee's base hourly rate depending on the compensation received. Employers should not assume every overtime calculation is simply base rate multiplied by 1.5.
Tipped employees also require special attention. The Department of Labor cautions that employers taking a tip credit cannot calculate the overtime premium using only the employee's reduced direct cash wage.
Yes.
Florida law requires employers that must pay the Florida minimum wage to prominently display the state's minimum wage poster in a conspicuous and accessible location at each establishment where covered employees work.
Employers should make the workplace notice part of their wage-change review rather than focusing exclusively on payroll.
The Florida Commerce minimum wage page provides state minimum wage information and employer resources.
The new rate itself is straightforward. The bigger task is making sure the change is reflected everywhere it needs to be.
Before September 30, employers should consider reviewing:
1. Employee pay rates. Identify covered employees whose rates need to increase to at least $15 per hour beginning September 30.
2. Tipped employee rates. Identify eligible tipped employees currently receiving the $10.98 minimum direct wage and prepare for the increase to $11.98.
3. The September 30 effective date. Don't assume the change begins with the next full payroll period or on January 1. Review pay periods that cross September 30 so hours are paid using the applicable rate.
4. Tip-credit practices. Review required employee notices, tip pooling, tip retention and other practices to make sure your organization satisfies applicable state and federal requirements.
5. Overtime calculations. Verify that new hourly rates flow correctly into overtime calculations and review tipped-employee overtime practices where applicable.
6. Other pay rates. Look at employees immediately above $15 and determine whether the increase creates wage compression or affects established starting rates and pay ranges.
7. Payroll settings. Review scheduled rate changes, earning codes and other payroll configurations that could be affected by an employee's hourly rate.
8. Workplace notices. Make sure required Florida minimum wage information is properly displayed.
9. Labor budgets. Consider the direct cost of wage increases along with potential effects on overtime, wage ranges and other compensation.
September's increase marks an important transition in Florida's minimum wage schedule.
The 2020 constitutional amendment established the increases that ultimately bring Florida's minimum wage to $15 per hour on September 30, 2026.
After reaching $15, Florida does not have another predetermined $1 increase scheduled for September 2027.
Instead, the Florida Constitution provides for annual adjustments based on inflation.
That means employers should continue watching Florida's annual minimum wage announcements even after the state reaches the $15 milestone.
As of September 16, 2026, Florida's minimum wage is $14.00 per hour. It increases to $15.00 per hour on September 30, 2026.
Florida's minimum wage will be $15.00 per hour beginning September 30, 2026.
The minimum direct cash wage for eligible tipped employees will be $11.98 per hour, based on the $15 state minimum wage minus Florida's $3.02 maximum tip credit.
No. Florida's minimum wage is $14 per hour through September 29, 2026. It increases to $15 beginning September 30.
Florida permits a maximum tip credit of $3.02 per hour for eligible tipped employees.
Florida law requires employers subject to the state's minimum wage to prominently display the state minimum wage poster in a conspicuous and accessible location. Employers should ensure the information they display is current.
The predetermined $1 annual increases end when Florida reaches $15 in September 2026. After that milestone, the Florida Constitution provides for annual minimum wage adjustments based on inflation.
September 30 is approaching quickly.
Florida employers should use the remaining time to identify affected employees, verify tipped wage practices, review payroll settings and make sure required workplace notices are current.
For employers with hourly workforces, getting ahead of the change can help make the transition to Florida's $15 minimum wage a routine payroll update rather than a last-minute payroll issue.
CTR Payroll | HR works with employers in Florida and across the country, with a Southwest Florida office in Marco Island and a team that understands the payroll challenges that come with managing employees across different states and jurisdictions.
Looking for payroll and HR support? Talk to a CTR Payroll | HR expert.
This information is provided for general informational purposes only and is not intended as legal advice. Employers should consult qualified legal counsel regarding their specific compliance obligations.
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