As of January 1st, the minimum wage for most workers in the state of New Jersey is $14.13 as the state target of $15 per hour nears.
Although critics have argued the raising of the minimum wage has created a negative financial burden for small businesses, Governor Phil Murphy has touted the increase as a success that makes New Jersey a role model for the nation.
The rate increase which went into effect on Monday, increased the minimum wage by $1.13.
The following information was published in a state press release on Monday:
The increase is part of legislation signed by Governor Murphy in February 2019 that gradually raises the minimum wage to $15 per hour by 2024 for most employees. When Governor Murphy took office in 2018, the state’s minimum wage was $8.60 per hour and he and the Legislature immediately identified increasing the minimum wage as a legislative priority. Under a law signed in 2019, the minimum wage increases by $1 per hour each year – or more if warranted because of significant increases in the Consumer Price Index (CPI).
“Putting our minimum wage on a clear path to $15 an hour and setting us among the nation’s leading states remains one of my proudest moments,” said Governor Murphy. “This increase will ensure that hundreds of thousands of hardworking people across our state are paid a wage that allows them to provide for their families and live with greater dignity. To solidify New Jersey as the State of Opportunity, we must continue our mission of building a stronger and fairer economy that works for every family, and that begins with growing our middle class.”
Under the law, seasonal and small employers were given until 2026 to pay their workers $15 per hour. The minimum hourly wage for these employees will increase to $12.93/hour on Jan. 1, up from $11.90.
Agricultural workers are guided by a separate minimum wage timetable and were given until 2027 to reach the $15/hour minimum wage. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $12.01, up from $11.05. Additionally, long-term care facility direct care staff will see their minimum wage rise by $1.13, to $17.13.
Tipped workers’ cash wage will increase to $5.26/hour, with employers able to claim an $8.87 tip credit, an increase in the maximum allowable tip credit of $1. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.