Effective June 1, 2011, the Florida minimum wage will be
increased to $7.31 per hour, surpassing the federal minimum wage.
This rate increase follows a Florida Circuit Court decision from
the Second Circuit in Tallahassee issued May 3, 2011, finding that
the Agency for Workforce Innovation's earlier decision to
decrease the Florida minimum wage due to deflation was
unconstitutional.
Pursuant to the Minimum Wage Amendment to the Florida Constitution
which took effect in 2005, every September the Agency for Workforce
Innovation is required to calculate an adjusted minimum wage rate
by increasing the current minimum wage rate by the rate of
inflation during the preceding twelve month period. The adjusted
minimum wage rate calculated is to take effect the following
January 1st.
In July 2009 Florida's minimum wage, $7.21 per hour, was
surpassed by the new federal minimum wage, $7.25 per hour.
Consistent with federal law, providing that the higher of the state
or federal minimum wage prevail, the federal minimum wage became
the standard in Florida. The federal minimum wage has remained the
standard in Florida since that time. The Agency for Workforce
Innovation's announcement in September 2010 that the federal
minimum wage, still surpassing the Florida minimum wage, would
remain the standard in Florida for 2011 prompted a lawsuit by
worker advocates and low-wage earners. This lawsuit resulted in a
judicial decision Tuesday, finding that the minimum wage rate in
Florida must be held steady during deflationary periods and that
the current minimum wage rate in Florida must be adjusted to
account for an unconstitutional reduction to the Florida minimum
wage for 2010 (which decreased Florida's minimum wage from
$7.21 to $7.06 per hour).
While the state can still appeal this decision, until there is an
appellate ruling modifying the decision, employers should prepare
to comply with the new minimum wage requirement. Absent an
appellate decision to the contrary, as of June 1, 2011, employees
paid a minimum wage will see a six cent an hour increase in their
paychecks. Tipped employees who meet the eligibility requirements
for the tip credit under the Fair Labor Standards Act
("FLSA"), will also see an increase, as they must now be
paid a direct wage of at least $4.29 per hour in addition to
tips.
Florida's new minimum wage poster announcing the increase can
be downloaded in English and Spanish from the Agency for Workforce
Innovation's website and should be posted by employers as soon
as possible.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
