TALLAHASSEE – Florida’s minimum wage increased to $12 an hour on Saturday.
In 2020, Florida voters were asked to vote on the state’s minimum wage.
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Amendment 2 proposed raising the minimum to $10 per hour, effective Sept. 30, 2021, then an additional $1 per hour each year for five years, until September 30, 2026, when it would become $15 per hour. After that, minimum wage increases would be tied to annual inflation adjustment.
An increase in minimum wages would give workers in Florida who earn the least more money to live on and to spend. But, those same workers might feel the toughest consequences.
Businesses across the state, especially those hit hard by pandemic loss, have indicated that paying higher minimum wages will result in cutting work hours — or even cutting jobs.
Further costs to taxpayers involve the higher costs to the government as an employer, and for government contracts that would become more costly.
State data analysts estimate public costs will be $16 million in the first year, growing to half a billion dollars over the five years.
According to the U.S. Bureau of Labor Statistics, the federal minimum wage, which is $7.25, works out to be worth about $10.17 when adjusted for inflation.
Florida had the highest rate of inflation in the country in July, more than double the national average of 4%, according to the Consumer Price Index.