Adjusting to the Florida Minimum Wage Increase

Chad Sorenson, SHRM-SCP, SPHR

President of Adaptive HR Solutions

In November, Florida voters approved raising the minimum wage to $15 per hour by 2026, placing a one size fits all approach across a diverse state. Unlike the legislative changes in other states, this was a state constitutional amendment, which would requirement another amendment to make any adjustments. What does this mean for employers?

Despite what might happen to Florida’s economy over the next six years, the minimum wage will increase every year. Employers must develop strategies today to deal with the 15% increase in minimum wage happening in September 2021 and the $1 per hour increase every year after until it reaches $15 per hour. Even employers who are currently paying more than minimum wage will be impacted by these changes as they deal with increased competition for labor, rising costs and potential demands for higher wages from current employees.

Objectives:

• Specific objectives accomplished in this session will include identifying specific changes employers will need to make prior to the first increase in September; understanding the true financial impact of increased labor costs; and learn what strategies will need to be put in place to address compensation compression issues for employers raising their minimum wage.
• In addition, participants will better understand how to partner with line managers to manage workforce costs, develop strategies to combat outside pressures on their workforce, and identify HR metrics that will assist company management’s understanding of the true cost of labor.

This program has been submitted for 1 SHRM and HRCI credit.