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What You Need to Know About Florida Tip Laws

Filled with tourist destinations and great weather, Florida is the perfect place for restaurants to thrive — as long as they can comply with tipping regulations. Like many other states, Florida has unique state tipping laws that are often in flux.

Whether you own a seafood shack right on the beach or a fine-dining spot in a Miami hotel, you need to know the ins and outs of Florida’s tipping laws. 

Is Tip Pooling Legal in Florida?

Many restaurants implement tip pooling systems to create equitable pay for servers and foster a collaborative work environment, but laws around tip pools can get fuzzy state-by-state.

Florida restaurant owners can breathe a sigh of relief, though — Florida’s tip pooling laws align with the federal regulations laid out by the Fair Labor Standards Act (FLSA).

Florida’s Minimum Wage & Tip Credit

Florida joins the majority of states in allowing employers to take the tip credit — but not quite as much as other states. Federal rules set the minimum wage at $7.25 per hour and allow employers to take up to $5.12 in tip credit. 

At the time of publication, Florida’s minimum wage is $11 per hour, significantly higher than the federal minimum wage. On top of an increased minimum wage, Florida only allows employers to take a tip credit of $3.02 per hour. With these regulations in place, Florida restaurant owners must pay tipped employees at least $7.98 per hour. 

But head’s up — the minimum wage is increasing. As of September 30, 2023, Florida’s minimum wage will increase to $12.00 per hour, and will continue increasing each year until it reaches $15.00 per hour in 2026. Looking ahead, restaurant owners can expect to pay a tipped minimum wage of $11.98 per hour.

Mandatory Service Charges Are Wages in Florida

If you’re charging a mandatory service fee for large parties or to reserve a table, you might hope that will count as a tip for your service staff. 

Mandatory service charges are not considered tips in Florida, but rather are the property of the employer. The employer may choose to distribute the service charge to an employee, but these would count as wages and would be subject to payroll tax withholdings. 

That being said, Florida has not joined other states in requiring employers to make it clear to customers that mandatory service charges are not considered tips.

Tip laws can get tricky, so always consult a lawyer when changing tip policy. 

At Kickfin, we want to help restaurants comply with tipping regulations and save you time and energy. We put up guardrails that prevent improper tipping practices and make it easy to instantly tip out your staff. Request a demo to see for yourself. 

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