You’ve probably seen the protesters and signs calling for a $15-an-hour minimum wage nationally. Now there’s a Florida bid to increase the minimum wage.
Potentially before voters in 2020, a proposed constitutional amendment would gradually increase Florida’s minimum wage to $15 an hour by 2026. It has more than the required number of signatures — 769,000 — to be on the ballot. The Florida Supreme Court only has to sign off on the language.
But while welcomed by underpaid workers, the proposed amendment is likely to face opposition from some employers and business groups in the state.
They say a $15 minimum wage would mean a 77 percent increase in the basic hourly wage, now $8.46. Proponents argue that the increase would be gradual, over six years, and would benefit the economy, as minimum-wage workers tend to spend what they earn. Workers, no matter at what rung of the ladder, deserve to be paid a “fair wage,” they say.
Opponents say a higher minimum wage in the state could hurt jobs. Employers may seek to curb labor costs by reducing employees’ hours or moving to automation where they can. Consumers could pay, too, in higher prices at their local restaurant or store.
But labor experts and some employers say businesses are already paying many workers higher wages to stay competitive in today’s job market.
Ginger Martin, president and CEO of American National Bank in Oakland Park, said she reconsidered the bank’s compensation last year when she learned that some tellers were working two jobs.
“They had to work two jobs to take care of their family. That really kind of hit me. I don’t want my people having to do that!” Martin said.
So Martin gave them a raise to $19.23 an hour in 2019, and that’s going up to $20 an hour in 2020.
If voters approve the constitutional amendment, Florida’s minimum wage would be increased from the minimum wage of $8.56 an hour in 2020 to $10 an hour on Sept. 30, 2021. After that, the minimum wage would be increased by $1 an hour each year on Sept. 30, until it reaches $15 an hour in 2026.
“We’re lucky to be in an economic boom time, but that doesn’t last forever. People should be paid a fair, living wage. It shouldn’t be something that happens when times are good. People need to feed their families,” said Ben Pollara, who represents Miami-based Florida for a Fair Wage, the organization behind the proposed amendment.
The federal minimum wage, which is $7.25 an hour, has not been changed since 2009. Still, many states have raised their own minimum wage.
Twenty-six states and Washington, D.C., have changed their minimum wage laws since 2014, according to the Economic Policy Institute, which produces a minimum wage tracker. States that will gradually increase to $15 an hour include New York, Massachusetts, Connecticut, and California, as well as Washington, D.C. Several other states are on their way to increasing their minimum wage to $12 or $13.50.
Higher pay but fewer jobs?
Aaron Abramoff, director of operations for The Restaurant People, said a rise to a $15 minimum wage would hurt the Fort Lauderdale-based restaurant company.
“We would have to find ways to reduce the number of employees or hours that they work. Or on the flip side, would have to find ways to increase costs of our service to the guests,” Abramoff said. The Restaurant People employs about 400 at its Broward restaurants, which include S3 restaurant, Yolo and Boatyard.
Besides the minimum wage, there’s also a “tipped” minimum for workers including bartenders and servers. On Jan. 1, the new tipped wage in Florida will be $5.54 an hour. If the amendment passes, the minimum for tipped employees would more than double to $12 an hour, once the $15 minimum takes effect.
Pollara counters that the current tipping system is unfair to both workers, who are dependent on tips, and consumers, who pay extra for service.
“It makes the financial lives of wait staff incredibly tenuous and up to the generosity of patrons,” he said.
The Florida Chamber says the proposed $15 minimum wage would increase prices for consumers because many businesses will have to pass on their higher labor costs. Employers won’t hire as many people or cut back on workers’ hours, said Edie Ousley, spokeswoman.
The Florida Restaurant & Lodging Association say a higher minimum could result in hotels and restaurants introducing automation where they can, reducing hours for workers, or scaling back expansion plans, which hurts jobs.
“Hospitality jobs — these are often first jobs, where workers gain experience,” said Samantha Padgett, general counsel for the restaurant association.
Mason Jackson, president of CareerSource Broward, said job loss is an argument that is made every time a minimum wage increase is proposed. He thinks businesses would absorb a gradual increase, as long as they’re seeing good business growth.
“If your labor force can’t afford to live here, they’re going to go other places. Businesses are going to have to figure out a way to pay a higher wage and a living wage,” he said.
Where you live matters
Generally, wages have been modestly increasing in Florida. Consider:
The average 2018 wage in South Florida was about $54,000, or $27 an hour, according to data from the Florida Department of Economic Opportunity. That’s an increase from five years ago when the average 2013 wage was about $47,000 a year, or $23.50 an hour, in South Florida.
The average wage in the Orlando area was about $49,944, or $25 an hour, according to data from the Florida Department of Economic Opportunity. That’s an increase from five years ago when the average wage was $43,142, a year, or $21.50 an hour.
But the high cost of living in some parts of the state is a big problem. Affordable housing is hard to find, and costs for basics including food, transportation and healthcare keep rising.
The United Way study found that 49 percent of the state’s families struggle to pay their bills. The study points to low wages, reduced work hours, depleted savings and increased costs of living.
Updated for 2019, the study found that a Florida family of four — two adults, a preschooler and an infant — has to make more than $55,000 a year just to meet basic expenses. In Broward County, families need to make more than $65,000. In Miami-Dade and Palm Beach counties, a family of four needs to make at least $61,000 to $65,000. Single adults in South Florida need to make more than $24,000 to make ends meet.
“The household survival budget is the bare minimum. It’s without going out to eat or going to the movies,” explained United Way policy director Heather Davidson. She said the research project examines “the population that are working, but struggling to make ends meet. They’re one emergency away from being in a dire situation, a paycheck or two away from losing housing or health care.”
Pollara said even a $15-an-hour minimum wage “isn’t ideal. $15 is not going to go as far in Miami-Dade County as Sumter County.” (Sumter is in the northwestern part of Florida and the home to The Villages, an enormous senior-retirement community.)
But with increased wages, some workers wouldn’t have to work multiple jobs to make a living, Pollara said. The hope “is they can lose some of those jobs, and work 40 or 50 hours a week at one job,” he said.
