Saturday, December 28, 2013

Florida Minimum Wage To Increase In 2014

Florida's minimum wage is set to increase to $7.93 per hour on January 1, 2014.  In 2004, Florida voters approved a constitutional amendment which created Florida's minimum wage.  The minimum wage applies to all employees in the state who are covered by the federal minimum wage.


Florida law requires the Florida Department of Economic Opportunity to calculate a minimum wage rate each year.   The annual calculation is based on the percentage increase in the federal Consumer Price Index for Urban Wage Earners and Clerical Workers in the South Region for the 12-month period prior to September 1, 2013.


Employers must pay their employees the hourly state minimum wage for all hours worked in Florida.  The definitions of employer, employee, and wage for state purposes are the same as those established under the federal Fair Labor Standards Act (FLSA).  Employers of tipped employees, who meet eligibility requirements for the tip credit under the FLSA, may count tips actually received as wages under the Florida minimum wage.  However, the employer must pay tipped employees a direct wage. 


The direct wage for tipped employees is calculated as equal to the minimum wage ($7.93) minus the 2003 tip credit ($3.02), or a direct hourly wage of $4.91 as of January 1, 2014.