Despite solid job opportunities and low unemployment, inflation has affected the costs of living and caused financial hardship across the Sunshine State.
Florida’s minimum wage is set to rise to $11 an hour starting September 30th. The new minimum wage should help low-paid workers navigate the new financial conditions.
The voter-approved amendment will then be raised to $15 an hour on September 30, 2026, with inflation-bound increases afterward.
Spearheading the new minimum wage
Prominent Orlando lawyer John Morgan led the constitutional amendment, spending millions of dollars on its passage.
Republican leaders such as state GOP Chairman Joe Gruters, a Sarasota senator, and House Speaker Chris Sprowls, R-Palm Harbor, protested the amendment, saying the raise would hurt small businesses.
The increases, which include an immediate raise to a minimum starting salary of $18 to $21 an hour, are intended to assist employees in coping with chronic inflation as well as to assist the business in attracting and keeping top talent, thereby reducing employee turnover.
In Florida, for instance, an entry-level employee will immediately be paid $8 to $11 more per hour than the state's $10 minimum wage. The increase in hourly pay amounts to more than $16,000 per year.
The Federal Reserve, the organization in charge of maintaining price stability, is under pressure as a result of inflation, which is still significantly greater than many Americans have ever experienced. Next week, the Fed is predicted to announce another significant increase in its benchmark interest rate, raising the cost of numerous consumer and commercial loans.
According to experts, Fed's annual 2% inflation objective may not be reached for two years or more, even if inflation peaks. In the upcoming months, it is anticipated that the price of rental apartments and other services, like health care, will continue to increase.
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