A topic that has been a source of contention in several states throughout the United States is the discussion around hikes in the minimum wage. As the cost of living continues to rise and income inequality continues to widen, several states have started taking measures to guarantee that their minimum wage is in line with the economic reality that their inhabitants are experiencing. Not even this state is an exception.
This state has lately announced a large rise in its minimum wage to give its workers pay that allows them to maintain their standard of living. In the following paragraphs, we will discuss the specifics of this hike, including the date it will take effect and the possible effects it may have on the economy and workforce of the state.
Minimum Wage Increase in The United States
For many years, increasing the minimum wage has been a heated topic, particularly because the economic environment is becoming more unpredictable. The earnings that many Americans are now receiving are not adequate to satisfy their requirements. It is common for some states to be more impacted than others, often due to unstable economic situations or a high cost of living combined with low salaries.
The state of Florida is one of those states where workers are eagerly anticipating a hike in the minimum wage. Thankfully, the rise has been declared, and at this point, all that remains is to look forward to the execution of the raise.
Overview of Minimum Wage Increase in The United States
| Program | Minimum wage Increase |
| Government | US Provincial Government |
| Receivers | American Citizens |
| Applicable in | The USA |
| States | All |
| Category | Financial News |
Florida
An increase from the existing minimum pay of $12 per hour, the new minimum wage for the state of Florida will be $13 per hour and will go into effect on September 30, 2024. It is part of a progressive strategy that aims to reach $15 per hour by September 2026, after a constitutional change that was enacted in 2020. Although this may not seem like a huge increase to some people, it is part of the plan so that it may be implemented gradually.
The federal minimum wage in the United States has been unchanged at $7.25 per hour since 2009 without any inflation changes. This rise is long overdue, particularly because there have been no updates to account for inflation. An increasing number of governments have taken things into their own hands and implemented their hikes, even though this stagnation has not had the same effect on every worker.
The state of Florida, which is well-known for its thriving tourist economy and its big Latino population, is one of these particular states. There will be a substantial influence on a large number of employment within the hospitality industry, particularly in the hospitality and restaurant industries, which are often characterized by low earnings and strong demand.
Check the States’ details for the Minimum wage of $15 in 2024
Several states have passed legislation to increase the minimum wage to $15 by the year 2024 and beyond.
- Delaware in the year 2025
- The state of New Jersey (2024)
- 2025 Illinois (State)
- The State of New York (2025)
- 2026 Florida (year)
- Maryland (2025) Rhode Island (2025) in the year 2025
FL’s Minimum Wage Requirements
The wage rise in Florida will be implemented in steps with yearly increments, beginning with the first dollar increase from $12 to $13 an hour in 2024. This will be done to make the transition easier for companies. It is proposed to implement the following increments:
The minimum wage is scheduled to increase to $14 per hour in the year 2025. By the constitutional amendment, it will reach $15 per hour by the year 2026. However, not every worker will see the same level of gain.
Because of the tips they get, workers who are paid by tips are paid on a separate scale. Even though their earnings are higher than the existing minimum, they will also get raises; yet, their ultimate compensation will still be lower than that of workers who do not receive tips.
Here is a list of the salary changes that apply to workers who get tips:
- $9.98 per hour in 2024.
- $10.98 per hour in 2025.
- $11.98 per hour in 2026.
Advantages of Raising the Minimum Wage in the United States
Because of the legislation of the United States government regarding the minimum wage, every worker in the nation, regardless of their race, class, or ethnicity, is guaranteed a standard and set hourly salary.
The United States minimum wage program provides several benefits in addition to the primary objective it was designed to accomplish. Listed below are some of them:
Improve People’s Standard of Living:
There is a possibility that the United States of America might use minimum wage regulations to ensure that all entry-level workers get minimal pay. This could contribute to an improvement in the overall quality of life in the country.
Help Reduce Poverty:
Every worker in the United States receives basic pay that is sufficient to meet their fundamental living expenditures thanks to the minimum wage.
The equality of income:
Regardless of their country, gender, or social status, workers in the United States of America are entitled to the standard hourly rate. This is because the minimum wage requirement is in effect.
Continue to Foster Economic Growth:
Your expenditures will grow as a direct result of the increase in the payment. As a consequence of this, there is a rise in the amount of money spent by consumers, which drives the economy ahead.
Justification for the Increase in Charge
Several considerations led to the decision to increase the minimum wage, including the following:
- Over the last several years, this state has had a consistent rise in the cost of living, which has been continuously growing. There has been a substantial burden placed on low-wage workers as a result of the rising costs of housing, healthcare, education, and other vital expenditures. The rise in wages is intended to assist workers in keeping up with the growing expenses of living.
- Economic Inequality: One of the primary objectives of the salary rise is to address the issue of economic inequality. The goal of the state is to narrow the income gap and create a more equal distribution of wealth by increasing the incomes of workers who are paid the least.
- Stimulating the Economy: A rise in salaries may result in an increase in consumer expenditure, which can, in turn, boost the economy of the local area. When workers have more discretionary money, they are more likely to spend it on products and services, which is beneficial to local companies and may contribute to the development of new jobs.
Regarding the Future
The state is not going to cease in the year 2026. Additionally, beginning in the year 2028, any additional increases will be connected to the Consumer Price Index (CPI) to safeguard workers and ensure that the law is sustainable in the future.
This guarantees that salaries continue to keep pace with inflation, preserving the buying power of both workers and employers.
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Especially for the Latino population, which constitutes a sizeable share of the workforce in the state at lower socio-economic levels, this long-awaited raise in Florida’s minimum wage is of the utmost importance.
A dedication to the well-being of Florida’s citizens is reflected in the wage increase, which is intended to enhance the economic situation of workers.
Final Thoughts
Even though the transformation presents several possibilities as well as problems, it demonstrates a dedication to enhancing the economic well-being of the people who live in the state. As the new pay goes into effect, it will be essential to keep a close eye on how it affects the economy and the workforce. This will ensure that the advantages are maximized and that any possible negatives are handled.
Calista Embry is a finance journalist who graduated from Johns Hopkins University. She has a passion for writing and researching the impact of finance on social life.