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On Jan. 1, 2015, Florida’s minimum wage increased by 12 cents from $7.93 to $8.05, with a minimum wage of at least $5.03 per hour for tipped employees.
The minimum wage increase is the result of a state constitutional amendment approved by voters in 2004 that provides for annual rate adjustments to keep pace with the cost of living.State law requires a new minimum wage calculation each year on Sept. 30, based on the percentage increase in the Consumer Price Index for the 12-month period prior to Sept. 1. If the calculated rate is higher than the federal minimum wage, the state’s rate takes effect the following January.
Florida’s new minimum wage for tipped employees – $5.03 per hour, plus tips – also went into effect Jan 1. This rate is calculated as equal to the tip credit – $3.02 – subtracted from the minimum wage of $8.05. Under the Fair Labor Standards Act, employers of “tipped employees” may count tips actually received as wages toward satisfaction of the state minimum wage, but the employer must pay tipped employees a direct wage.
The minimum wage applies to all employees in the state who are covered by the federal minimum wage.
Increased consumer spending expected as a result of the wage increase will boost economic growth by $38.7 million, an analysis of census data by the nonpartisan Economic Policy Institute predicts.
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