Florida’s minimum wage will increase from $14 to $15 per hour on September 30, 2026, marking the final $1 increase under the schedule voters approved through Amendment 2 in November 2020. Annual inflation-based adjustments will resume in 2027, so this year’s increase does not represent a permanent cap on the state’s minimum wage. Additional information is available from FloridaCommerce.

For home care providers, the upcoming change carries an important distinction: certain Medicaid direct care workers have already been subject to a separate $15-per-hour requirement since 2022.

A Separate Requirement for Medicaid Providers

Florida’s 2022-23 state budget established funding and wage requirements to raise pay for covered Medicaid workers to at least $15 per hour. Implementation included supplemental wage agreements, targeted fee schedule increases, and managed care reimbursement adjustments administered by the Agency for Health Care Administration (AHCA). The applicable wage agreements required compliance beginning October 1, 2022. Details are available on AHCA’s Medicaid provider minimum wage webpage.

The September 30 statewide increase is separate from that Medicaid initiative. Providers already paying covered workers at least $15 per hour will not need to raise those employees’ wages solely to meet the new statewide minimum. However, agencies should review compensation for all employees covered by the state minimum wage, including private pay caregivers and administrative or support staff who may fall outside the Medicaid-specific requirement.

Implications for Recruitment and Retention

Even for agencies already paying $15 or more, the broader increase may create additional pressure to remain competitive. As the statewide wage floor catches up with the Medicaid requirement, providers may need to reassess starting wages and pay differences between new hires and experienced caregivers.

The connection between wages and reimbursement is not new. In 2022, HCAF raised concerns that Medicaid managed care reimbursement adjustments might not reach providers before the separate wage mandate took effect. HCAF urged state officials to address that timing gap so agencies could meet their obligations without absorbing unfunded costs.

This year’s statewide increase provides another reason for agencies to review staffing budgets, payer contracts, and compensation practices together.

Preparing for September 30

Providers should take the following steps before the increase takes effect:

• Review Payroll: Identify covered employees earning less than $15 per hour and update their rates effective September 30.
• Assess Related Costs: Account for changes to overtime pay and other wage-related expenses.
• Review Pay Differences: Consider how the new minimum affects compensation for experienced caregivers and supervisory staff.
• Update Workplace Notices: Obtain the applicable minimum wage poster from FloridaCommerce.
• Plan Beyond 2026: Build future inflation-based adjustments into budgeting and contract discussions.

Agencies with questions about employee coverage or the interaction between statewide and Medicaid-specific requirements should consult their payroll professionals or employment counsel.