Marina
In 2025, many U.S. states have enacted or scheduled minimum wage increases, while the federal minimum wage remains $7.25 per hour. States with higher mandates override the federal floor, meaning workers are protected by the higher applicable rate.
The federal law also allows a tipped minimum wage of $2.13 per hour (for qualified tipped employees), but employers must ensure that total earnings (wages + tips) at least reach $7.25.
With inflation, cost of living pressures, and state ballot measures or legislation, dozens of states are raising minimum wages either automatically (indexing to inflation) or via fixed steps.
Key State Rate Changes in 2025
Below is a table summarizing selected states’ minimum wages for 2025 and notable changes:
| State | 2024 / Previous Rate | New 2025 Rate* | Notes / Tipped Wage | Effective Date / Comments |
|---|---|---|---|---|
| Florida | $13.00 | $14.00 | Tipped cash wage becomes $10.98, employer makes up difference if tips insufficient | September 30, 2025, per constitutional amendment |
| Alaska | $11.73 | $11.91 | — | January 1, 2025 |
| Arizona | ~$14.35 | $14.70 | — | January 1, 2025 |
| California | $16.00 | $16.50 | — | January 1, 2025 |
| Colorado | $14.42 | $14.81 | — | January 1, 2025 |
| Connecticut | $16.35 | $16.35 (no change) | — | — |
| Delaware | — | $15.00 | — | January 1, 2025 |
| DC (District of Columbia) | — | $17.50 | — | January 1, 2025 |
| Hawaii | $14.00 | $14.00 (no change) | — | — |
| Illinois | $15.00 | $15.00 (no change) | — | — |
| Many states | Using federal level | $7.25 (federal minimum) | — | No state-level hike |
* “New 2025 Rate” refers to the rate in effect as of the beginning or designated increase date in 2025.
This table highlights that Florida is among states with a scheduled hike in late 2025, while many others adjusted rates at the start of the year.
Florida: Spotlight on the 2025 Increase
What Is Changing?
- On September 30, 2025, Florida’s state minimum wage for non-tipped workers rises from $13.00 to $14.00 per hour.
- For tipped employees, the base cash wage will increase from $9.98 to $10.98 per hour. However, total wages (base + tips) must reach at least $14.00; otherwise, the employer must make up the shortfall.
- This step is part of a voter-approved 2020 constitutional amendment that mandates $1 annual increases until the rate reaches $15.00 per hour in 2026.
- After 2026, further adjustments will be tied to inflation and cost-of-living indexing.
Why Raise the Wage?
- The constitutional amendment requires the incremental increase.
- Rising costs of living (housing, utilities, food) put pressure on low-wage workers.
- Ensuring tipped workers’ total earnings meet at least the minimum wage reduces wage uncertainty in service sectors.
- The phased approach gives businesses time to absorb costs gradually.
Impact on Employees and Employers
For Employees
- Higher take-home pay for non-tipped workers who reach the new $14 baseline.
- Greater income security for tipped workers, since tip shortfalls must be made up.
- Helps with managing inflationary pressures—rent, transport, utilities—especially in urban areas.
For Employers
- Payroll costs rise significantly, especially in industries heavily reliant on minimum wage workers (e.g., hospitality, restaurants, retail, care).
- Some may respond by adjusting staffing levels, reducing hours, or increasing automation.
- But benefits may include lower turnover, greater worker satisfaction, and improved public image if handled well.
Preparations: What Employers & Employees Should Do
For Employers
- Update payroll systems and software to incorporate the $14.00 rate and tipped base of $10.98.
- Revise wage policies and tip-credit rules in handbooks and contracts.
- Ensure new labor law notices and posters reflect the updated rate and required tip credit.
- Budget ahead—estimate the incremental cost and plan staffing models accordingly.
- Communicate changes to all employees well before September 30.
For Employees
- Monitor pay stubs after the change to confirm you’re receiving the correct rate.
- Tipped workers should track tips and ensure that total pay meets $14.
- Speak with HR or labor authorities if there are discrepancies or non-compliance.
Phased Path to $15 per Hour
Florida’s schedule:
- 2021 → $10.00
- 2022 → $11.00
- 2023 → $12.00
- 2024 → $13.00
- 2025 → $14.00
- 2026 → $15.00 (final scheduled raise)
After 2026, wages will be adjusted yearly based on inflation and cost-of-living metrics.
The USA Minimum Wage Hike 2025 reveals a patchwork of state-level increases, with federal minimum still at $7.25 per hour.
Among these, Florida’s increase to $14/hour on September 30, 2025, and a $10.98 base for tipped employees, draws special attention given its phased path to $15.00 in 2026.
For workers, the increases provide much-needed relief amid rising costs. For employers, the changes pose real challenges, but also opportunities to build trust, improve retention, and project socially responsible practices if executed thoughtfully.
FAQs
When will Florida’s new minimum wage of $14 per hour take effect?
It takes effect September 30, 2025.
What is the tipped minimum wage in Florida after the increase?
The cash base for tipped employees becomes $10.98 per hour, but total earnings (base + tips) must reach $14.00.
When will Florida reach its $15/hour goal?
Florida is scheduled to hit $15.00 per hour on September 30, 2026, after which annual adjustments will be tied to inflation.