You may know that the federal minimum wage has been stuck at $7.25 for the past 15 years, and there’s little chance that it will go up any time soon. However, in many states, the minimum wage is higher.
Five years ago, Florida legislators passed a law that will gradually raise the state’s minimum wage to $15 per hour by 2026. The next stage of this process goes into effect at the end of this month, when the minimum wage rises to $14 per hour. For bartenders and other tipped employees, the hourly minimum wage will go up to $10.98.
Many Florida workers will consider these increases to be good news. However, not every worker gets the minimum wage. The minimum applies to most employees, with some exceptions for certain management positions. What’s more, it applies only to employees. It does not apply to workers who are not technically considered employees.
This could be bad news for so-called gig workers, who are generally considered independent contractors.
Gig work and independent contractors
The term “gig work” is often used in the context of rideshare services and similar Internet-based work. These jobs can be convenient because, in theory, they allow people to pick up work when they want to and turn it down when they are unavailable. In practice, however, many gig workers rely on these jobs full-time. And, after adding up their earnings and subtracting their expenses — for example, gas, health insurance, vehicle insurance and more — many of them find they are making less than minimum wage.
In fact, one survey found as many as one in three gig workers said they were making less than minimum wage. Another study found that the average rideshare driver in New York City, where the minimum wage is $15 per hour, makes only $11.12 an hour.
Check your classification
Workers who feel they are not being properly compensated can check to see how their jobs are classified. If they are classified as independent contractors. And, if so, they can investigate whether that classification is fair and accurate.