Minimum Wage Coalition Update
On February 4, 2019, Governor Phil Murphy signed A-15, which sets New Jersey on a path to increase the minimum wage to $15 by 2024. The new law takes effect on July 1, 2019, but it’s not as straightforward as you may think. How much the minimum wage will rise and when depends, in part, on the size and type of business, as well as the age and position of the employee.
For most employers, the minimum wage increases to $10 per hour on July 1, 2019 and to $11 on January 1, 2020. That’s a 35% increase in less than one year. Thereafter, the minimum wage will increase $1 every year until reaching $15 per hour in 2024. The minimum wage will increase at a slower rate for small businesses with less than six employees, seasonal businesses, and farm labor.
NJBIA has compiled a Fast Facts document that breaks it all down, and offers members a handy chart on when the different provisions of the law take effect.
While the bill signed into law did not address many business owners’ concerns, NJBIA will be working with the Legislature to enact legislation to help mitigate the potential negative impact on New Jersey businesses.
The following bills have already been introduced:
- S-3607 / A-5226 – Provides for suspension of scheduled minimum wage increases for economic reasons.
- S-3609 / A-5227 – Provides gross income tax credits for certain employers for certain costs arising from increase in minimum wage.
- S-3608 / A-5228 – Establishes task force to study impact of minimum wage increases on businesses.
- S-3483 / A-5103 – Provides tax credits for certain employers for employees less than 18 years old.
We will keep you updated on these and other minimum wage bills as they move through the legislative process.
NJBIA also wants to hear from businesses about how the minimum wage increase is impacting them, including the compression on the wages of higher paid employees. We will continue to relate these impacts in real time to our policymakers.
Please email NJBIA at firstname.lastname@example.org to tell us the actions you’re taking now and into the phasing in of the law in July ($10 an hour) and again in January 2020 ($11 an hour).