Florida Minimum-Wage and Tip-Credit Rules: What Hospitality Workers Need to Know

Florida Minimum-Wage and Tip-Credit Rules: Key Takeaways

As of August 2025, Florida's minimum wage is $13.00/hour for non-tipped employees and $9.98/hour direct cash wage for tipped employees, with a tip credit up to $3.02/hour.
Florida's minimum wage increases by $1.00 annually, reaching $15.00/hour by September 30, 2026, with a corresponding rise in the tipped minimum wage.
Employers must ensure tips plus direct wages meet or exceed the minimum wage and comply with strict tip pooling rules that exclude managers and non-tipped staff.

This guide explains key Florida minimum-wage and tip-credit rules hospitality workers need to understand for wage compliance. It highlights important employer and employee rights under current and upcoming wage laws.

Understanding these rules helps hospitality staff ensure fair pay while enabling employers to meet legal standards on tips and wages in Florida.

1. Florida Minimum-Wage and Tip-Credit Structure

Florida's state minimum wage for non-tipped employees is $13.00 per hour starting August 2025. For tipped employees, employers are allowed to take a tip credit of up to $3.02 per hour. This means employers must pay tipped workers a direct cash wage of at least $9.98 per hour. The employee's tips then must bring their total hourly earnings up to or above the full minimum wage.

The minimum wage in Florida is scheduled to increase yearly by $1.00 until it reaches $15.00 per hour on September 30, 2026. For example, on September 30, 2025, the minimum wage will increase to $14.00, with the tipped minimum cash wage rising to $10.98 per hour accordingly.

This tip credit approach ensures that tipped hospitality workers receive at least the state-mandated minimum wage when combining their direct pay and tips. Employers are responsible for making up any shortfall if tips plus direct wages are below the minimum wage.

2. Tip Pooling and Employee Rights Under Florida Law

Florida allows tip pooling, where employees who customarily and regularly receive tips (such as servers and bartenders) share their tips among themselves. However, those in roles that do not traditionally receive tips—like cooks, dishwashers, and kitchen staff—are excluded from mandatory tip pools. This protects non-tipped employees from being forced to contribute wages they do not share in.

Importantly, employers, managers, and supervisors are banned from participating in or benefiting from any tip pools. This prohibition prevents tip sharing from being exploited to funnel tips away from the staff directly serving customers.

Employers must notify employees about any tip pool requirements before starting and clearly explain how the tips will be distributed to ensure transparency and fairness.

Restaurant owners can learn more about restaurant owner responsibilities to better manage legal compliance and employee relations.

Service Charges vs. Tips in Florida Hospitality

Mandatory service charges added to customer bills are not considered tips under Florida law. These charges are retained by the employer and do not count towards tipped employees' income. If an employer chooses to distribute a portion of service charges to employees, those payments are treated as regular wages subject to payroll taxes and withholdings.

Credit Card Tips and Processing Fees

When customers tip by credit card, employers must pay employees the full tip amount shown on the receipt. Employers may deduct only a proportional share of the credit card processing fees based on tip amounts. No other fees or costs may be taken out of employee tips, ensuring workers receive the maximum amount customers intended.

3. The 80/20 Rule for Tipped Employees in Florida

Florida follows an "80/20 rule" pertaining to tipped employees’ duties. Employees can spend no more than 20% of their working time performing non-tipped duties, such as cleaning or food preparation. Additionally, non-tipped duties should not exceed 30 minutes consecutively.

If tipped workers spend more time than allowed on non-tipped activities, employers cannot apply the tip credit for that portion of time. Instead, they must pay the full minimum wage during those hours. This rule protects workers from being underpaid when performing tasks outside their tipping roles.

Employers seeking to understand how to comply with this rule and other regulations may benefit from the complete guide to multi-state payroll and labor standards compliance.

4. Recordkeeping and Employer Responsibilities in Florida

Employers must maintain accurate, detailed records of tipped employees’ hours worked, direct wages paid, and tips received. Proper documentation is crucial to ensure compliance with Florida's wage and tip laws.

Failure to keep adequate records or compensate employees correctly can lead to fines, penalties, and legal challenges. Employers should also address any pay discrepancies promptly to avoid disputes.

Tipped employees have the right to request detailed pay statements showing their wages and tips. Employers must provide these records when asked to demonstrate compliance with Florida labor laws.

For hospitality employers, learning from the server training manual template can help improve recordkeeping processes and employee compliance.

5. How Hospitality Workers Can Ensure Fair Pay in Florida

Hospitality workers should stay informed about the minimum wage rates, the tip-credit amounts, and their rights regarding tips and tip pooling. Employees should keep track of their hours, tips received, and pay statements to verify correct compensation.

If workers notice wage shortfalls or inconsistencies in tip pooling, they should communicate promptly with their employer or seek legal advice to protect their rights. Understanding the 80/20 rule helps tipped workers recognize when they should receive the full minimum wage for non-tipped duties.

Hospitality managers interested in tips on how to hire a restaurant manager may find useful strategies to build a compliant and fair pay structure within their team.

6. Additional Resources for Florida Hospitality Workers

For more detailed and authoritative information on Florida wage laws and tip credits, consult these trusted sources:

Florida Minimum-Wage and Tip-Credit Rules: Conclusion

Florida's minimum wage and tip credit rules are designed to ensure that hospitality workers earn a fair base wage combined with tips, reflecting the state's progressive wage increases toward $15.00 per hour.

Compliance with tip pooling rules, the 80/20 work time limits, and accurate recordkeeping safeguards employees’ earnings and employers’ legal standing. Both workers and employers benefit from understanding these regulations to maintain a fair, transparent, and legally compliant hospitality environment in Florida.

Employers looking to attract quality workers and promote compliance should consider recruitment and hospitality job posting compliance best practices to enhance hiring results.

01. What is the tipped minimum cash wage in Florida as of 2025?

As of August 2025, Florida requires employers to pay tipped employees a direct cash wage of at least $9.98 per hour, with a tip credit of up to $3.02 to reach the full $13.00 minimum wage.

02. Who can be required to participate in tip pooling under Florida law?

Only employees who customarily and regularly receive tips, like servers and bartenders, can be required to participate in tip pools. Cooks, dishwashers, and non-tipped staff are excluded.

03. How does the 80/20 rule affect tipped employees in Florida?

Tipped employees can spend no more than 20% of their working time on non-tipped duties. If exceeded, employers must pay the full minimum wage for that time.

04. Are employers allowed to include managers in tip pools?

No. Managers, employers, and supervisors are prohibited from participating in or benefiting from tip pools under Florida law.

05. What records must employers keep for tipped employees in Florida?

Employers must maintain accurate records of hours worked, wages paid, and tips received, and provide detailed pay statements upon request to comply with Florida labor laws.