What's going on with minimum wage? Employers must be aware that there is somewhat of a discrepancy between the federal minimum wage and the cost of living in 2016. This past Sunday, July 24, was the seventh year that the federal minimum wage has remained the same, even with the increased cost of daily expenses. The cost of living has risen 12% since 2009, leaving the actual value of minimum wage crashing to the ground. This is a huge step down from the days before Reagan, when the minimum wage started to fall. In 1968 minimum wage was at its highest. If we look at the dive from that peak, the value has dropped more than 25%.
As of January 1, 2015, the minimum wage hourly earning in Florida has increased to $8.05 per hour from the previous $7.93 earned per hour in the prior year. The raise in minimum wage also benefits "tipped employees" who have increased their hourly earnings to $5.03 per hour from the previous $4.91 earned the previous year. This is considering that these "tipped employees" are earning at least minimum wage under the Fair Labor Standards Act or "FLSA" between their hourly earnings and tips.