Florida’s minimum wage increases from $14 to $15 per hour on September 30, 2026. Employers should update payroll rates, tipped wages and workplace notices before the new rate takes effect.
The increase is the final scheduled step under the constitutional amendment approved by Florida voters in 2020. Although employers have known about the change for several years, its September effective date can still create payroll problems. A pay period may include hours worked both before and after the increase, and different rules apply to tipped, salaried nonexempt, piece-rate and commission-based employees.
When does the Florida minimum wage increase to $15?
The Florida minimum wage for 2026 changes on September 30:
- Through September 29, 2026: $14 per hour
- From September 30, 2026: $15 per hour
The new rate applies to work performed on or after September 30. Employers should not wait until the next pay period or the employee’s next payment date to apply the increase.
If a pay period covers dates on both sides of September 30, the payroll records should distinguish between hours worked before and after the change. Hours worked on or after the effective date must be paid at the new applicable rate.
The Florida Department of Commerce minimum-wage page confirms the scheduled increase. The $15 rate is also established in Section 24 of Article X of the Florida Constitution.
Which Florida employees are affected by the 2026 minimum wage increase?
The increase generally applies to covered, nonexempt employees working in Florida who would otherwise earn less than $15 per hour.
Employers should review more than their list of hourly employees. Minimum-wage requirements can also affect:
- Salaried nonexempt employees
- Tipped employees
- Employees paid by commission
- Piece-rate and day-rate employees
- Temporary and part-time employees
- Employees in training or introductory periods
Paying someone a salary does not automatically make that person exempt from minimum-wage or overtime requirements. The employee’s duties, salary arrangement and applicable exemption must satisfy the relevant legal tests.
For employees paid by commission, piece rate or another non-hourly method, total pay must still satisfy the applicable minimum wage for the hours worked. Overtime must also be calculated correctly when the employee is nonexempt.
Employees already earning at least $15 per hour do not automatically have to receive a raise because of the state increase. However, employers may need to review employment agreements, collective bargaining agreements or internal pay policies that connect other wage rates to the state minimum.
Businesses should also confirm that workers treated as independent contractors are classified correctly. The minimum wage does not apply to genuine independent contractors, but calling a worker a contractor does not determine their legal status.
What is the Florida tipped minimum wage in 2026?
Florida permits eligible employers to apply a maximum tip credit of $3.02 per hour.
When the state minimum wage reaches $15, the minimum direct cash wage for eligible tipped employees will therefore increase to:
$15.00 minimum wage minus $3.02 tip credit = $11.98 per hour
The current $10.98 tipped cash wage applies through September 29, 2026. The $11.98 rate applies from September 30.
Employers using the tip credit must ensure that each employee’s direct wages and qualifying tips reach at least the full $15 minimum wage. If they do not, the employer must make up the difference.
Employers must also inform tipped employees about the tip credit before using it. Tip retention and tip-pooling rules continue to apply. Managers and supervisors generally cannot keep employees’ tips, and an invalid tip pool can affect the employer’s right to claim the credit.
The U.S. Department of Labor’s guidance for tipped employees explains the notice, tip-credit and tip-pooling requirements.
What payroll updates should employers complete before September 30?
Employers should complete the following payroll review before the new Florida minimum wage takes effect.
Identify affected employees
Run a payroll report showing all employees with hourly rates below $15. Include tipped employees and employees paid on a salary, commission, piece-rate or day-rate basis.
Review employees in every Florida work location. Employees working remotely from Florida may also be covered even if the employer’s main office is in another state.
Enter the new rates with the correct effective date
Configure payroll so that the new rates begin on September 30:
- $15 per hour for covered non-tipped employees
- At least $11.98 in direct wages for eligible tipped employees when the full $3.02 tip credit is used
Do not overwrite the historical rate. Payroll records should show when the old rate ended and the new rate began.
Prepare for pay periods that cross September 30
A pay period covering September 30 may need two rates. Confirm that the timekeeping and payroll systems can allocate hours according to the date the work was performed.
Check overnight shifts and manual time entries carefully. Managers responsible for approving timecards should understand which rate applies.
Review overtime calculations
The minimum-wage increase may change an employee’s regular rate and overtime pay. Nonexempt employees generally must receive overtime for hours worked over 40 in a workweek.
Where an employee works at different rates during the same workweek, receives commissions or earns nondiscretionary bonuses, the regular rate may require an additional calculation. The Department of Labor’s overtime guidance explains the federal requirements.
Check deductions
Review deductions for uniforms, tools, cash shortages, meals or other employer-related costs. A deduction should not reduce a covered employee’s pay below the applicable minimum wage or interfere with required overtime pay.
Update employment documents
Review offer letters, employment agreements, compensation plans and internal payroll instructions that list a specific wage rate.
Florida law does not generally require a new employment agreement simply because the minimum wage changes. However, existing documents should not contain outdated or conflicting pay information.
Test the first payroll
Before processing the first payroll containing hours worked on or after September 30, test a sample of affected employees. Include:
- A regular hourly employee
- A tipped employee
- An employee with overtime
- An employee whose pay period crosses the effective date
- An employee receiving a commission or nondiscretionary bonus
After processing, compare the payroll register with time records and approved pay rates.
Which Florida minimum-wage poster must employers display?
Florida employers subject to the state minimum wage must display the required minimum-wage notice in a conspicuous and accessible location at each establishment.
Employers should replace the notice showing the $14 rate with the current poster covering the $15 rate. The official poster should be downloaded from the Florida Department of Commerce workplace posters page.
Businesses with multiple locations should confirm that each establishment has the current notice. Providing an electronic copy to remote employees can be helpful, but employers should not assume that electronic distribution replaces any physical posting requirement that applies to their workplace.
Florida’s statutory poster requirements are set out in Section 448.109 of the Florida Statutes.
What payroll mistakes should Florida employers avoid?
Common mistakes during a minimum-wage change include:
- Applying the new rate from the next pay period instead of September 30
- Updating hourly wages but forgetting the tipped cash wage
- Assuming tips always cover the difference between $11.98 and $15
- Missing salaried nonexempt, commission or piece-rate employees
- Calculating overtime using an outdated regular rate
- Allowing deductions to reduce pay below the minimum wage
- Overwriting historical rates instead of recording an effective date
- Leaving an outdated minimum-wage poster on display
- Failing to check all Florida locations and remote employees
- Not testing payroll before the first affected payment is processed
Accurate records are important when a rate changes during a pay period. Federal recordkeeping rules generally require covered employers to retain information about hours worked, pay rates, straight-time earnings, overtime and deductions. The Department of Labor’s recordkeeping guidance provides a list of the required records.
Frequently asked questions about the Florida minimum wage for 2026
Does the $15 minimum wage apply to small businesses?
Business size alone does not create a general exemption. Coverage depends on the employee, employer and applicable federal and state rules. Employers relying on an exemption should confirm that all requirements are satisfied.
What is the Florida tipped minimum wage from September 30, 2026?
The minimum direct cash wage is $11.98 per hour when an eligible employer claims the full $3.02 tip credit. Direct wages and qualifying tips must equal at least $15 per hour.
Does the new rate begin with the next pay period?
No. The rate applies to work performed on or after September 30, even if that date falls in the middle of a pay period.
Do employees already earning $15 need a raise?
Not solely because of the minimum-wage increase. However, an employment agreement, collective bargaining agreement or company pay policy may require an adjustment.
Does the increase change overtime rules?
The basic overtime rules do not change, but a higher hourly or regular rate can increase the amount of overtime pay due.
Preparing payroll for Florida’s $15 minimum wage
Employers should complete their review before September 30 rather than correcting payroll after wages have been paid. The most important steps are to identify affected employees, enter the new rates with the correct effective date, update the tipped cash wage, test overtime calculations and replace the workplace poster.
Prism USA supports Florida businesses with payroll processing, bookkeeping and tax reporting. Employers that need assistance preparing for the rate change can learn more about Prism USA’s payroll services.
This article provides general information and is not a substitute for legal or tax advice.
