MINIMUM WAGE
FRLA and Business Coalition Work Together to Defeat Amendment 2 FRLA and several business associations are working together to create an awareness campaign describing the negative impact of Amendment 2. Amendment 2 is a proposed amendment to Florida’s constitution that will raise the minimum wage in Florida to $15 per hour by 2026. Floridians will be asked to vote on Amendment 2 in the upcoming November 3, 2020 election. Save Florida Jobs, the coalition’s political committee’s operating name, met recently to create awareness and to discuss the impact, both intended and unintended, if this referendum is passed. Amendment 2 will result in a 75% increase in labor costs over five years. In order to accommodate this increase, employers may be forced to: » reduce staff » reduce hours for employees » reduce employee benefits » increase the use of automation » eliminate entry level positions » increase prices.
In addition to increased labor costs, if passed, this proposal will impact the tip credit. Florida’s tip credit is frozen at $3.02. If Amendment 2 passes, the required wage will go up, but the tip credit will stay the same. This means employers of tipped employees will have to pay a significantly higher required cash wage for tipped employees. For example Currently
8 employees, 12,000 total tipped employee hours x $5.54 = $66,480 per year. After passage of Amendment 2
8 employees, 12,000 total tipped employee hours x $11.98 = $143,760 per year. Total increase is $77,280. Paid political advertisement paid for by Save Florida Jobs, Inc., 230 South Adams St., Ste. 200, Tallahassee, FL 32301.
Employers of tipped employees can estimate how much the passage of Amendment 2 will cost by using FRLA’s calculator found on https://frla.org/minimum-wage. To address this issue, the Coalition is raising funds to generate voter awareness. To donate visit frla.org/minimum-wage.
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Risk Strategies is the country’s leading specialty real estate insurance brokerage and risk management advisor. Robert Grady | Vice President 239-405-6802 | rgrady@risk-strategies.com
www.RiskStrategies.com 12 SUMMER
2018
Part of Insurance Council for the FRLA FLORIDA RESTAUR ANT & LOD GING A S SO CIATION
