Thousands of Miami-Dade Workers Face Pay Cuts Due to New Florida Contracts

This week, a Florida state law enacted in 2024 began to impact new contracts in Miami-Dade County, potentially stripping thousands of workers of protections under the "living wage" ordinance, which currently sets pay at $22.53 per hour for certain employees.

The change stems from HB 433, a law passed by the Florida Legislature two years ago, which amended section 218.077 of the Florida Statutes. This amendment restricts local governments' ability to mandate that contractors pay wages or provide benefits exceeding state standards.

These contractual provisions took effect on September 30, 2026, impacting agreements signed from that date forward. Existing contracts are specifically safeguarded by the legislation, meaning not all affected workers will see immediate reductions in their pay.

However, as current contracts expire and Miami-Dade awards new ones, companies will no longer be required to adhere to the county's long-standing "living wage" ordinance.

Over 20,000 county-contracted workers could gradually feel the effects, according to El Nuevo Herald. This includes personnel in sectors such as cleaning, security, food services, transportation, and some health services.

From $22.53 to Florida's $15 Minimum Wage

For the fiscal year 2026-2027, Miami-Dade set a living wage of $18.40 per hour for workers with qualifying health benefits. For those without such benefits, the rate is $22.53 per hour, as per county records.

Miami-Dade's notice for the new fiscal year explicitly warns that section 218.077 of the Florida Statutes prevents the county from imposing a minimum wage or benefits on employees working under contracts awarded after September 30, 2026.

In these new contracts, the general wage floor will be dictated by state guidelines. As of September 30, Florida's minimum wage stands at $15 per hour, following a voter-approved constitutional amendment in 2020.

Contractors are not required to reduce wages to $15. Companies may choose to offer higher pay, and other agreements or laws can influence compensation. What is no longer possible is for Miami-Dade to mandate through its contracting power that contractors pay the county's living wage.

The difference can be significant. A worker currently earning $22.53 per hour who transitions to $15 per hour would see a $7.53 hourly reduction. Over a 40-hour workweek for 52 weeks, this equates to an annual shortfall of approximately $15,662.

Miami-Dade's Commitment to the Living Wage Since 1999

Miami-Dade's living wage policy was established through Ordinance 99-44 in 1999 and later incorporated into section 2-8.9 of the County Code.

The initiative aimed to ensure higher than minimum wage levels for certain workers employed by companies receiving public funds through service contracts. This regulation has covered contracts in food preparation, security, cleaning and maintenance, non-supervisory administrative roles, transportation, parking, printing, and landscaping.

The ordinance applies to specific county service contracts and activities at Miami International Airport.

Existing Contract Workers Retain Protection—for Now

Workers under contracts awarded before September 30, 2026, do not immediately lose this protection. HB 433 explicitly states that its amendments to section 218.077 cannot affect contracts made before this cutoff.

Therefore, the impact will unfold gradually, depending on when existing contracts conclude, when they are re-bid, and the salary terms offered by companies securing new deals.

The Implications of Florida's HB 433

HB 433, officially titled "Employment Regulations," was approved by the Florida Legislature in March 2024 and became state law Chapter 2024-80.

In terms of wages, the law prohibits political subdivisions from mandating a minimum wage different from the state or federal levels, with certain exceptions outlined in the legislation.

It also bars local governments from using purchasing and contracting procedures to control or influence wages or benefits provided by vendors, contractors, and companies doing business with these administrations.

Additionally, local authorities cannot favor one company over another in public contracting based on the wages or benefits they offer to their employees.

However, the law does not prevent a local government from setting wages for its own employees.

Debate Over Public Contracting Policies

This legislative change has sparked debate between supporters and critics. During legislative discussions, HB 433 proponents argued for restricting local business regulations and establishing uniform rules across Florida. The measure passed with a 74-36 vote in the House and 24-15 in the state Senate.

Opponents, including labor unions and local officials, caution that removing wage requirements from public contracts could lower income for workers in one of Florida's most expensive regions.

For those affected, the full impact of the new regulation will be revealed gradually. Employees under pre-deadline contracts retain county ordinance protections, while new contracts will follow the state law framework.

This shift coincides with Florida's minimum wage rise to $15 per hour. Although this amount is an increase from the previous $14, it remains significantly lower than the $22.53 that Miami-Dade currently requires from certain contractors who do not provide health benefits as outlined in the living wage scale.