New Jersey Legislators Pass Minimum Wage Bill

From Payroll

January 31, 2019

By Christine Pulfrey

New Jersey’s hourly minimum wage is to increase to $10 from $8.85 for most workers July 1 under a measure that passed the legislature Jan. 31.

The measure was signed Feb. 4, 2019, by Gov. Phil Murphy (D) and took effect with his signature.

The minimum wage is to rise in increments until reaching $15 by 2024 for those workers.

Under the bill ( A.B. 15, S.B. 15), the hourly minimum wage for most workers is to rise to $10 on July 1, 2019, and is to be followed by annual Jan. 1 increases to $11 in 2020, $12 in 2021, $13 in 2022, $14 in 2023, and to $15 in 2024. Subsequent increases would be adjusted annually for inflation.

The tipped-worker minimum cash wage is to rise to $2.63 from $2.13 on July 1, 2019, and is to be followed by annual Jan. 1 increases to $3.13 in 2020, $4.13 in 2021, and $5.13 from 2022 to 2024. Subsequent increases in the tipped minimum wage are to be adjusted annually for inflation.

For seasonal employees who work from May 1 to Sept. 30, and employers with up to five employees, the hourly minimum wage is to reach $15 by Jan. 1, 2026. The minimum wage is to rise to $10.30 on Jan. 1, 2020; to $11.10 on Jan. 1, 2021; to $11.90 on Jan. 1, 2022; to $12.70 on Jan. 1, 2023; to $13.50 on Jan. 1, 2024; to $14.30 on Jan. 1, 2025; and to $15 on Jan. 1, 2026. Subsequent increases are to be adjusted annually for inflation.

For those who work on farms at a regular hourly rate or at a piece rate, the hourly minimum wage is to rise to $10.30 on Jan. 1, 2020; to $10.90 on Jan. 1, 2022; to $11.70 on Jan. 1, 2023; and to $12.50 on Jan. 1, 2024. The Department of Agriculture and the Department of Labor and Workforce Development are to determine whether to continue to increase the hourly minimum wage for farm workers until it reaches $15 by 2027.

Starting in 2020, a training wage of 90 percent of the minimum wage could be paid for the first 120 hours of employment by those enrolled in a training program.

(Updated Feb. 4 with the signing of the legislation.)

To contact the reporter on this story: Christine Pulfrey in Washington at cpulfrey@bloombergtax.com

To contact the editors responsible for this story: Michael Baer at mbaer@bloombergtax.com; Michael Trimarchi at mtrimarchi@bloombergtax.com

Copyright © 2019 The Bureau of National Affairs, Inc. All Rights Reserved.


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