Florida Minimum Wage Set to Increase to $14 in 2025

Florida's ongoing minimum wage adjustments continue to shape payroll strategies for businesses across the state, particularly those in commercial real estate, retail, hospitality, and service industries.

Effective September 30, 2025, the state's minimum wage will rise to $14.00 per hour for non-tipped employees, marking the next step in the phased increases approved by voters through Amendment 2 in 2020.

This change, which applies to all employers regardless of size, builds on last year's adjustment to $13.00 and sets the stage for a final increase to $15.00 in 2026. For tipped employees, the direct cash wage will increase to $10.98 per hour, maintaining the $3.02 tip credit, provided that tips bring total earnings to at least $14.00 per hour.

While this hike aims to address cost-of-living pressures, it directly impacts operational costs for property owners managing on-site staff, such as maintenance teams or security personnel, and for tenants in commercial spaces who employ hourly workers.

Coupled with federal Fair Labor Standards Act (FLSA) considerations—where recent attempts to raise exempt employee salary thresholds have been blocked by courts—this development requires a thorough review of wage classifications to ensure compliance and minimize exposure to audits or lawsuits.

Key Details of the 2025 Minimum Wage Adjustment

The increase stems from Florida's constitutional mandate, which schedules annual $1.00 hikes until reaching $15.00, after which adjustments will tie to the Consumer Price Index starting in 2027. Here's a breakdown:

Non-Tipped Employees

$14.00 per hour, up from $13.00.

Tipped Employees

‍Minimum cash wage of $10.98 per hour (tips must make up the difference to $14.00; if not, employers cover the shortfall).

Effective Date

September 30, 2025—wages for work performed on or after this date must comply.

Exemptions and Coverage

Applies statewide, with no opt-outs for small businesses. Federal contractors or certain agricultural workers may have separate rules, but most commercial operations fall under this.

Importantly, Florida's minimum wage supersedes the federal rate of $7.25 per hour, so businesses must adhere to the higher state standard. For overtime, Florida follows FLSA requirements: time-and-a-half for hours over 40 in a workweek.

Recent federal developments add a layer of complexity. The U.S. Department of Labor's 2024 rule, which temporarily raised the salary threshold for exempt employees (e.g., executive, administrative, professional) to $844 per week ($43,888 annually) on July 1, 2024, was vacated nationwide by a Texas federal court on November 15, 2024. This reverted the threshold to the 2019 level of $684 per week ($35,568 annually). A planned further increase to $1,128 per week ($58,656 annually) on January 1, 2025, was also blocked. Appeals were filed, but as of mid-2025, the Department halted efforts amid reconsideration, leaving the $35,568 threshold in place. For Florida employers, this means exempt employees' salaries must still meet or exceed this federal floor, but the state's higher minimum wage could indirectly affect calculations for salaried workers if their effective hourly rate dips below $14.00.

Practical Implications for Businesses

This wage hike could add significant costs—potentially thousands per employee annually—especially for labor-intensive sectors like property management or construction. For example, a commercial landlord with a team of 10 hourly maintenance workers might see an extra $20,800 in yearly payroll (assuming 40-hour weeks), not including overtime or benefits ripple effects.

Key risks include:

Misclassification Claims

With the FLSA threshold stable at $35,568, ensure exempt roles meet both salary and duties tests. Florida's rising minimum wage amplifies scrutiny; if a salaried employee's pay equates to less than $14.00 per hour for expected hours, it could trigger reclassification demands.

Tipped Worker Compliance

In hospitality-heavy commercial spaces (e.g., restaurants or event venues), track tips meticulously via tip pools and reporting to avoid shortfalls.

Contractual Impacts

Review vendor agreements or tenant leases for wage-related clauses, such as cost pass-throughs or labor escalators.

Budgeting and Pricing

Property owners may need to adjust rents or fees to offset increased operational costs, while businesses should forecast impacts on profit margins.

To mitigate problems, conduct a payroll audit now: Calculate new rates, update time-tracking systems, and notify employees in writing at least 30 days in advance, as best practice.

Step-by-Step Compliance Guidance

Audit Your Workforce

Identify all hourly and tipped employees. Use tools like payroll software to simulate the increase and flag any below-threshold salaries.

Update Policies and Posters

Display the latest Florida minimum wage poster (available from the Department of Economic Opportunity) in break rooms or common areas. Revise handbooks to reflect the changes.

Reclassify if Needed

For borderline exempt roles, consider boosting salaries to maintain exemption or shifting to hourly with overtime eligibility. Factor in the stable $35,568 federal threshold.

Train Managers

Educate supervisors on accurate timekeeping, tip crediting, and avoiding off-the-clock work to prevent FLSA violations.

Monitor Federal Updates

With the DOL reconsidering its rule, stay alert for potential revivals—subscribe to alerts from reliable sources.

Seek Professional Review

Engage counsel to review classifications and contracts, ensuring alignment with both state and federal laws.

By addressing these proactively, you not only avoid penalties but also enhance employee retention in a competitive market.

For tailored advice on integrating these changes into your operations, contact Munizzi Law Firm today. We're here to provide the precise and comprehensive strategies that protect your business while fostering growth in Florida's dynamic economy.