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Minimum wage went up in nearly half of U.S. states this year. | Photo credit: Shutterstock
As of this week, more than one-third of U.S. states have a minimum wage of at least $15 per hour, putting increasing pressure on operators to navigate a patchwork of local wage requirements.
Florida just became the 18th state to surpass the $15 per hour minimum wage threshold — more than double the current hourly rate of $7.25, which has not changed since 2009.
The increase completes Florida’s phased move to a $15 minimum wage, a schedule approved by voters in 2020. As labor costs increase around the country, the gap continues to widen between local and federal wage requirements.
In other government-related news, the Common Cents Act passes Congress as the penny is phased out, the National Labor Relations Board restored a more employer-friendly standard for disciplining workers, and more.
Florida minimum wage hits $15 this week
Florida’s minimum wage rises from $14 to $15 an hour on Sept. 30, completing the annual incremental increases approved by voters in a 2020 constitutional amendment. The $15 rate will remain in effect through Dec. 31, 2027, after which the state’s wage rate will be adjusted annually for inflation.
The increase is the final scheduled $1 annual step under the constitutional amendment.
More than 20 states have raised the minimum wage ceiling in 2026, ranging from $10.85 in Montana to $17.13 in Washington.
Why operators should care: For full-service restaurants, the change also affects tipped employees. Florida permits a tip credit of $3.02, meaning an eligible tipped employee’s minimum direct cash wage rises to $11.98 an hour, up from $10.98.
The Common Cents Act heads to President Trump’s desk
The Common Cents Act — which halts the minting of pennies and establishes rounding rules for cash transactions when exact change is unavailable — has passed Congress after the Senate and the House both approved the bipartisan legislation.
The bill now heads to President Trump’s desk for approval and is expected to be signed into law soon.
Why operators should care: The law will affect how restaurants handle cash payments and receipts. According to the National Restaurant Association, more than a quarter of annual industry sales are made in cash. The law finds a balance between rounding rules that favor the customer, and ones that favor the business.
NLRB makes it easier (again) for employers to discipline workers
The National Labor Relations Board restored a standard from the first Trump administration that makes it easier for employers to discipline workers for offensive conduct that occurs while employees are engaged in protected union activity.
For example, while an employee’s right to protest, or discuss and vote on union representation is still protected by the National Labor Relations Act, it may be easier for employers to discipline or fire an employee for using profanity or harsh language while arguing with a manager or posting on social media about their workplace environment.
The 2026 decision brings back the standards established by the NLRB in its 2020 General Motors decision, which uses the Wright Line test to determine if an employee can be disciplined. The Wright test basically states that an employer can reprimand or terminate an employee if their actions would have warranted disciplining regardless of protected labor activity.
Why operators should care: Regardless of if a business’ employees are unionized, this standard impacts all employers. Employees can, for example, complain to each other about wages, schedules, staffing, or other working conditions without fear of repercussions. However, now employers are offered more protections if they choose to discipline an employee who has allegedly stepped over the line from “complaining” to “abuse.”
California passes legislation for high-sugar and non-ultra-processed labeling
California Gov. Gavin Newsom signed a package of food and nutrition legislation Monday that includes new labeling requirements for restaurant menus and creates a first-in-the-nation state certification program for non-ultra-processed foods.
By Jan. 1, 2029, restaurants with 20 or more locations must place a sugar-cube icon next to standard menu beverages containing at least 100% of the FDA’s daily value for added sugar.
Separately, AB 2244 creates a voluntary “Non-Ultraprocessed Certified” seal for food products.Assembly Bill 2244 passed the California Legislature unanimously last month. Non-ultraprocessed foods must not be classified as ultra-processed; appear on lists of restricted school foods; or contain high levels of sodium, sugar, and saturated fats.
Why operators should care: Foods that restaurants frequently buy and use as ingredients or on their menus could qualify for the non-ultra-processed label like bread, sauces, and canned produce. Restaurants will also need to redesign menus to comply with the high-sugar labeling standard, and possibly change their recipes to keep up with public perception.
American Franchise Act gets White House support
The Trump administration has thrown its support behind the American Franchise Act, giving fresh momentum to legislation that would establish a franchise-specific federal joint-employer standard.
The bill, H.R. 5267, which was introduced last year, would amend the National Labor Relations Act and Fair Labor Standards Act. Under this proposed bill, a franchisor can only be considered a joint employer if they “share or codetermine one or more of the employees’ essential terms and conditions of employment” like wages, benefits, and working hours.
The joint employer standard has gone through multiple revisions throughout three presidential administrations. The National Labor Relations Board currently follows the 2020 version of the rule, which does not hold franchisors responsible for franchisees’ adherence to labor rules and regulations.
The American Franchise Act is currently supported by multiple restaurant industry organizations, including the National Restaurant Association and the International Franchise Association.
Why operators should care: For franchise operators, the bill could establish a clearer federal boundary between franchisor oversight and franchisee employment responsibilities.
Contact Joanna at joanna.fantozzi@informa.com
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