INDIAN ROCKS BEACH, Fla. — Florida’s minimum wage will rise to $15 an hour next week, while the minimum wage for tipped workers will increase to nearly $12 an hour under a constitutional amendment approved by voters in 2020.
The increase is the latest in a series of scheduled wage hikes that have affected businesses and workers across the state, including restaurants and shops along Gulf Boulevard in Indian Rocks Beach. Business owners said the higher wages have led them to raise prices and adjust staffing over the years.
Meanwhile, workers said they are looking forward to earning more.
At Kooky Coconut, a high school student named Ella has worked behind the counter for about seven months. She said she works three to four shifts a week and has been making $14 an hour.
“It’s definitely exciting. We appreciate it,” Ella said of the upcoming increase.
Kooky Coconut owner Joanne Inguaggiato said the wage increase comes with both benefits and challenges. She said the business has had to slightly raise prices, but employees are happy to receive higher pay.
“The employees, of course, love getting another raise. But we’re balancing cost of goods. Everything is going up,” Inguaggiato said.
The scheduled increases began after voters approved the constitutional amendment in 2020. This is the final year with a set increase. Starting next year, Florida’s minimum wage will be adjusted for inflation.
Richard Smith, an associate professor of economics at the University of South Florida, said businesses must determine how to absorb the added labor costs, but workers at the entry level have benefited.
“Minimum wage will have risen since 2020 by around 75%, which far exceeds the rate of inflation. So entry level workers have actually been doing pretty well,” Smith said.
Crabby Bill’s Family Restaurants employs hundreds of people across Pinellas County. CEO Matthew Loder Sr. said the rising minimum wage has cost the company $450,000 between 2019 and now.
Loder said that figure reflects base wages and does not include additional costs tied to payroll taxes, workers’ compensation and other expenses that increase along with wages.
He said the company has tried different ways to save money, including reducing shifts. He also said the restaurants are focusing on customer experience to bring in more people.
“If we can convince more people to come because we’re a better value of them, we’re going to play that and try that and see if we can do that,” Loder said.
Loder also said he has concerns that servers may be less inclined to pursue tips if they rely more on their paycheck.
Inguaggiato said her business has adjusted to changes over the years and plans to continue doing so.
“It’s just part of business and we’ve been here 20 years, so we’ve been able to make it happen all this time, and we’ll keep going,” she said.
Businesses said they expect another increase next year, though the amount will depend on inflation.