Florida’s new minimum wage rises from $8.56 to $10 an hour (a 16% increase) on September 30, 2021. However, there is a provision in that law allowing employers to take a “credit” on the wages of tipped employees and assume that some of their wages are paid in tips. The amendment sets that amount as what the FLSA allowed in 2003. In 2003, the allowable employer tip credit was $3.02 an hour.
What this means is that instead of rising 16%, the minimum wage for tipped workers will increase from $5.44 to 6.98 an hour. Every restaurant in the state just saw their tipped labor costs rise by 28%. Look for price increases to cover that, plus you STILL get to tip.
Even worse for dining establishments: on September 30, 2022, the tipped minimum wage will rise another 14% to $7.98 an hour.
Most workers do not make minimum wage. The reason for this is that the value that the worker’s labor adds more to the transaction than that. If a worker is only making minimum wage, this is an indication that their job can literally be done by anyone, so the value of their labor is worth no more than whatever that minimum wage is.
So workers whose labor is of low value figured out that it is easier to vote to have the government force people at police gunpoint to pay them more than it is to increase their skill set so that their labor is worth more. In other words, they are voting to remove voluntary cooperation from the market- they are warping market forces.
So now I am going to have to pay the person who carries the food to my table a 28% raise as a part of my menu cost increase, plus a 15 percent tip? I don’t think so. So beginning September 30, I am going to cut my tip amount to 5 to 10 percent. Perhaps 2022 will see me no longer tipping at all.