Current Minimum Wage and Upcoming Changes in New Jersey

1. What is the current minimum wage in New Jersey and how does it compare to the federal minimum wage?


As of December 30, 2019, the current minimum wage in New Jersey is $11.00 per hour. This is higher than the federal minimum wage of $7.25 per hour. However, the minimum wage in New Jersey is set to increase each year until it reaches $15.00 per hour by 2024, while the federal minimum wage has not been raised since 2009.

2. Will there be a state-wide increase in the minimum wage in New Jersey this year?

It is currently unclear if there will be a state-wide increase in the minimum wage in New Jersey this year. In 2019, Governor Phil Murphy signed a bill into law that would gradually increase the minimum wage to $15 per hour by 2024 for most workers in the state. The current minimum wage in New Jersey is $11 per hour for most workers, with some exceptions for agricultural and seasonal workers.

However, there have been ongoing discussions and debates about potentially pausing or reversing this minimum wage increase due to the economic impacts of the COVID-19 pandemic. Some business groups have expressed concerns about being able to afford the increased wages during this difficult time.

As of now, there has not been any official announcement about changes to the planned minimum wage increases. It will ultimately depend on how the situation unfolds and if any legislative action is taken.

3. How often does the minimum wage change in New Jersey and what factors contribute to these changes?

The minimum wage in New Jersey is typically changed once a year. In 2020, the state legislature passed a law that will increase the minimum wage to $15 by 2024. This law also includes an annual adjustment for inflation starting in 2020.

Factors that contribute to changes in the minimum wage in New Jersey include federal and state legislation, economic factors such as inflation and cost of living increases, and pressure from advocacy groups and labor unions. The decision to change the minimum wage also involves input from policymakers, economists, businesses, and workers.

4. Is there a proposed increase in the minimum wage for tipped workers in New Jersey?


Yes, there is a proposed increase in the minimum wage for tipped workers in New Jersey. The current minimum wage for tipped workers in New Jersey is $2.13 per hour, which has not been increased since 1991. Under a proposal by Governor Phil Murphy, the minimum wage for tipped workers would gradually increase to $5.13 per hour by 2024. This proposal still needs to be approved by the state legislature before it can go into effect.

5. How does cost of living affect minimum wage policies in New Jersey?


Cost of living can have a significant impact on minimum wage policies in New Jersey. As the cost of goods and services increases, individuals may struggle to make ends meet with a minimum wage that does not keep up with these rising costs.

Firstly, high cost of living in New Jersey means that people are paying more for basic necessities such as housing, food, transportation, and healthcare. This can make it difficult for individuals earning minimum wage to afford these essential expenses. For example, the median rent for a two-bedroom apartment in New Jersey is more than $1,400 per month, making it one of the most expensive states to rent in the country. This poses challenges for minimum wage workers who may struggle to afford decent housing on their income.

Secondly, a high cost of living can also lead to inflation. When prices rise due to increased demand or higher production costs, workers will need their wages to increase accordingly in order to maintain their purchasing power. If the minimum wage does not increase at the same rate as inflation, workers earning minimum wage will effectively be taking a pay cut as they will be able to purchase fewer goods and services with their income.

Moreover, when the cost of living is high, there is an increased strain on government programs such as food stamps and other forms of welfare assistance for low-income families. This places more burden on taxpayers as they fund these programs, which would not be necessary if workers were earning a higher minimum wage that could cover their basic needs.

In response to these challenges posed by high cost of living, several cities and counties in New Jersey have enacted local ordinances to raise the minimum wage above state levels. For example, in 2019, Governor Phil Murphy signed legislation that gradually increases the state’s minimum wage from $8.85 per hour to $15 per hour by 2024. Additionally, some cities such as Newark have implemented a higher local minimum wage before this statewide increase takes effect.

In conclusion, cost of living plays a crucial role in determining the effectiveness of minimum wage policies in New Jersey. In order to adequately support low-income workers and alleviate poverty, it is important for the minimum wage to keep pace with the rising cost of living in the state.

6. Are there any exemptions or exceptions to the current minimum wage laws in New Jersey, such as for certain industries or age groups?


Yes, there are some exemptions and exceptions to the current minimum wage laws in New Jersey:

1. Tipped employees: Tipped employees, such as servers and bartenders, may be paid a lower cash wage of no less than $2.13 per hour, as long as their total earnings from tips and the cash wage equal at least the minimum wage rate.

2. Seasonal workers: Seasonal workers who work in a particular industry for less than 20 weeks in a calendar year may be paid 85% of the minimum wage ($9.35 per hour) during that time.

3. Agricultural workers: Agricultural workers are exempt from state minimum wage rates but are entitled to federal minimum wage of $7.25 per hour.

4. Domestic workers: Employees engaged in domestic service in a household not responsible for caring for children or elderly individuals may be paid 85% of the minimum wage ($9.35 per hour).

5. Employees of small businesses: Businesses with five or fewer employees are only required to pay employees at least $8.85 per hour until January 1, 2020.

6. Apprentice and training wages: Employers may pay an apprentice or trainee a reduced salary if they have entered into an agreement approved by the Commissioner of Labor and Workforce Development.

7. Students under age 18: Students under age 18 may be paid no less than the federal youth minimum wage of $4.25 per hour during their first 90 consecutive calendar days of employment with an employer.

8. Employees with disabilities: Individuals with disabilities may be employed at special minimum wages based on individual productivity assessment under certain conditions.

It should also be noted that these exemptions do not apply to employers covered by federal Fair Labor Standards Act (FLSA) regulations, which set a higher federal minimum wage rate of $7.25 per hour.

7. Has New Jersey ever had a different minimum wage than the federal level and why?


Yes, New Jersey has had a different minimum wage than the federal level at various points in history. Prior to 2004, New Jersey’s minimum wage was set at the same rate as the federal minimum wage. However, in 2005, New Jersey voters approved a ballot measure that raised the state minimum wage to $6.15 per hour and required annual increases tied to inflation.

In 2013, then-Governor Chris Christie vetoed a bill that would have raised New Jersey’s minimum wage to $8.50 per hour and tied future increases to inflation. The legislature then put the issue on the ballot for voters to decide. In November 2013, voters approved a new constitutional amendment raising New Jersey’s minimum wage to $8.25 per hour with annual cost-of-living increases.

The main reason for having a different minimum wage than the federal level is because states have their own laws and policies that may differ from those at the federal level. Additionally, state lawmakers may determine that their state’s economy or cost of living warrants a higher minimum wage than what is set at the federal level.

8. Does New Jersey’s minimum wage automatically adjust for inflation or is it subject to legislative action?


New Jersey’s minimum wage is subject to legislative action and does not automatically adjust for inflation. In 2019, the state passed a law that gradually increases the minimum wage to $15 per hour by 2024 through annual incremental increases. This means that each year, legislators must vote on and approve an increase in the minimum wage for it to go into effect. However, after 2024, the minimum wage will be adjusted annually based on the Consumer Price Index for All Urban Consumers (CPI-U) as determined by the federal government.

9. How does the upcoming presidential election impact potential changes to New Jersey’s minimum wage laws?


The upcoming presidential election does not have a direct impact on potential changes to New Jersey’s minimum wage laws. However, depending on the outcome of the election and any shifts in the political landscape, there may be changes in federal policies and regulations that could indirectly affect New Jersey’s minimum wage laws. For example, if a new president and/or Congress were to pass legislation raising the federal minimum wage, it could potentially lead to pressure for similar increases at the state level, including in New Jersey. Additionally, the administration’s stance on issues such as labor rights and income inequality may influence state policymakers’ decisions on minimum wage legislation.

10. Are there any organizations or advocacy groups pushing for an increase in the state’s minimum wage?


Yes, there are several advocacy groups and organizations in California that are actively pushing for an increase in the state’s minimum wage. These include:

1. Fight for $15 – This is a national movement that advocates for a $15 minimum wage and has a presence in California.

2. SEIU (Service Employees International Union) California – This union represents over 700,000 workers in various industries and is advocating for a higher minimum wage.

3. California Labor Federation – Made up of over 1,200 unions representing 2.1 million workers, this organization supports increasing the minimum wage in the state.

4. California Inequality Campaign – This is a coalition of labor unions, community organizations, faith groups, and advocates working towards economic justice and equality, including raising the minimum wage.

5. Raise the Wage California – This coalition of community organizations, labor unions, small businesses, faith leaders, and workers’ rights advocates is dedicated to increasing California’s minimum wage to at least $15 per hour.

6. The Living Wage Coalition – This organization works towards economic justice by advocating for policies such as raising the minimum wage to provide livable wages for all workers.

7. Economic Policy Institute – This think tank conducts research on economic policies and has published reports on the impact of raising the minimum wage in California.

8. National Employment Law Project (NELP) – NELP is a nonprofit organization that advocates for policies to improve the lives of low-wage workers and has been actively involved in campaigns to raise the minimum wage in California.

9. Restaurant Opportunities Centers United (ROC United) – A national organization fighting against poverty wages and working conditions in the restaurant industry, ROC United has chapters in major cities across California advocating for higher wages for restaurant workers.

10. Faith-based organizations such as Clergy & Laity United for Economic Justice (CLUE) are also involved in advocating for an increase in the state’s minimum wage.

11. Has there been any opposition from businesses or other groups to past increases in New Jersey’s minimum wage?


Yes, there has been opposition from businesses and other groups to past increases in New Jersey’s minimum wage. Some business owners argue that increasing the minimum wage will lead to higher labor costs, which may force them to increase prices or reduce staff. They also argue that it will hurt small businesses that may struggle to afford the higher wages.

In 2013, when New Jersey voters approved a constitutional amendment to raise the minimum wage from $7.25 to $8.25 an hour, some business owners expressed concerns about the impact on their bottom line. However, supporters argued that raising the minimum wage would boost consumer spending and benefit the economy as a whole.

In 2019, when Governor Phil Murphy signed a bill increasing New Jersey’s minimum wage from $8.85 to $10 an hour, there was also opposition from some businesses and business organizations. They argued that the phased-in increases would be too burdensome and could potentially lead to job losses.

There have also been opposition and protests from various industry groups, such as restaurants and hotels, against proposals for a $15 minimum wage in New Jersey. These groups argue that such a steep increase would be unsustainable for their businesses and could lead to closures or layoffs.

Overall, there is often debate and division between those who believe that raising the minimum wage will benefit workers and boost economic growth, versus those who argue it will harm businesses and potentially lead to job losses.

12. What is the process for determining and implementing changes to the state’s minimum wage?

The process for determining and implementing changes to the state’s minimum wage typically involves a combination of legislative action, public input, and administrative rulemaking. The specific steps may vary by state but generally include:

1. Legislation: Typically, the state legislature introduces and passes a bill that proposes changes to the state’s minimum wage. The bill may also include provisions such as annual cost-of-living adjustments or exemptions for certain industries or employers.

2. Public input: Before a bill is passed, there is usually an opportunity for public comment and hearings to gather input from stakeholders such as workers, businesses, labor unions, and advocacy groups.

3. Governor approval: Once the bill is passed by both houses of the legislature, it goes to the governor for approval. In some states, the governor also has the power to veto or amend the bill before signing it into law.

4. Administrative rulemaking: After the bill becomes law, the state agency responsible for enforcing wage laws (e.g., labor department) will often conduct a rulemaking process to establish regulations and guidelines for implementing and enforcing the minimum wage increase.

5. Implementation date: The new minimum wage rate usually goes into effect on a specified date, which may be immediate or phased in over time.

6. Enforcement: The state labor department or other designated agency is responsible for enforcing compliance with the new minimum wage laws. Employers who fail to pay employees at least the minimum wage could face penalties and legal action.

7. Ongoing review: Some states have mechanisms in place to regularly review and potentially adjust their minimum wage rates based on economic factors such as inflation and cost-of-living increases.

It’s important to note that this process can vary depending on each state’s unique laws and political processes.

13. Are there any proposals to eliminate or reduce taxes on small businesses affected by higher minimum wages in New Jersey?

There are currently no proposals in place to eliminate or reduce taxes specifically for small businesses affected by higher minimum wages in New Jersey. However, some lawmakers have proposed other forms of relief, such as tax credits or exemptions, for these businesses. These proposals have not yet been implemented.

14. Have neighboring states recently made changes to their own minimum wages that may influence upcoming decisions for New Jersey?


Yes, neighboring states such as New York, Pennsylvania, and Delaware have all increased their minimum wages in recent years. These changes may influence upcoming decisions for New Jersey as legislators may consider staying competitive with neighboring states or adjusting their minimum wage in relation to these changes.

15. How do potential changes to immigration policies at the federal level affect discussions about possible changes to New Jersey’s minimum wage?


Potential changes to immigration policies at the federal level can have an impact on discussions about possible changes to New Jersey’s minimum wage in several ways:

1. Impact on workforce: Changes to immigration policies, such as stricter enforcement or increased restrictions on visas, can reduce the number of immigrant workers in New Jersey. This could potentially lead to a decrease in the available labor supply and increase competition for jobs among non-immigrant workers, which could drive wages down.

2. Effect on cost of living: Many immigrants work low-paying jobs and are more likely to be affected by changes in the minimum wage. If there is a decrease in their wages due to changes in immigration policies, it may lead to higher rates of poverty and a higher cost of living for these individuals. This can influence discussions about increasing the minimum wage as advocates may argue that a raise is necessary to help combat poverty.

3. Business perspective: On the other hand, some businesses may argue that stricter immigration policies will result in a smaller labor pool, making it harder for them to find employees and potentially leading them to pay higher wages. In this case, they may oppose any potential increase in the minimum wage as it would further increase their labor costs.

4. Political stance: Discussions around immigration and minimum wage are often intertwined in political discussions at both federal and state levels. Changes to federal immigration policies could impact how state policymakers approach issues related to labor laws and wages, including discussions on raising the minimum wage.

Ultimately, changes to immigration policies at the federal level can have an indirect effect on discussions about potential changes to New Jersey’s minimum wage through its impact on workforce demographics, cost of living, business perspectives, and political climate.

16. What is considered a “living wage” in various cities within New Jersey, and how do they compare with current and proposed state-level minimum wages?


A living wage is defined as the amount of income necessary to cover basic expenses such as housing, food, transportation, health care, and other essential needs. The actual amount considered a “living wage” can vary depending on factors such as family size and cost of living in a specific area.

According to the MIT Living Wage Calculator, which uses data from various government agencies and reputable sources, the following are considered living wages in major cities within New Jersey (based on a family of four with two working adults):

– Newark: $26.42/hour or $54,937/year
– Jersey City: $30.56/hour or $63,522/year
– Paterson: $24.23/hour or $50,353/year
– Elizabeth: $28.16/hour or $58,519/year
– Trenton: $25.40/hour or $52,777/year

In comparison, the current state minimum wage in New Jersey is $11/hour and is set to increase to $12 on October 1st, 2020. The proposed minimum wage increase under Governor Phil Murphy is to reach $15 by 2024 for most workers.

Based on the living wage calculations listed above, it is clear that the current state minimum wage falls short of meeting the basic needs of a family of four in any major city in New Jersey. The proposed minimum wage increase would also not meet the MIT living wage standards for all cities except some areas of Newark and Paterson.

Overall, there continues to be a significant gap between the current state minimum wage and what is considered a living wage in major cities within New Jersey. This reinforces the need for ongoing discussions and efforts towards ensuring fair wages for workers across all industries in order to support families and promote economic stability.

17. Is there currently a debate about whether students, interns, or trainees should be exempt from receiving a full state-level minimum wage in New Jersey?


Yes, there is currently a debate about whether students, interns, or trainees should be exempt from receiving a full state-level minimum wage in New Jersey. This issue has been raised in the context of proposed legislation to increase the state minimum wage to $15 per hour by 2024. While some argue that these workers should receive the same minimum wage as other employees, others argue that exemptions are necessary to prevent negative impacts on employment opportunities and businesses. The New Jersey Assembly passed a bill in January 2019 that would phase out exemptions for certain groups of workers including students and agricultural workers by 2024. However, there is ongoing discussion and debate about the specifics of this bill and whether all exemptions should be eliminated.

18. What has been the impact of past minimum wage increases on employment rates and average income levels in New Jersey?


The impact of past minimum wage increases on employment rates and average income levels in New Jersey is mixed.

On one hand, studies have shown that previous minimum wage increases in New Jersey have led to a slight decrease in employment for low-skilled workers. This is because as the cost of labor increases, some employers may choose to reduce their workforce or cut hours in order to compensate for the higher wages.

However, these same studies also show that overall average income levels have increased following minimum wage increases. This is because even though some low-skilled workers may lose their jobs, those who remain employed see a significant increase in their earnings. Additionally, the increased spending power of minimum wage earners can lead to positive economic impacts such as increased consumer spending and job growth in other industries.

Overall, the impact of past minimum wage increases on employment rates and average income levels in New Jersey has been relatively small and varies depending on individual circumstances. However, there is evidence that increasing the minimum wage can help lift many low-wage workers out of poverty and improve overall economic conditions.

19. Are there any states with lower minimum wages than New Jersey, and what are the potential impacts on the local economy if New Jersey raises its minimum wage?


There are several states with lower minimum wages than New Jersey, including:

1. Alabama – $7.25 per hour
2. Georgia – $7.25 per hour
3. Idaho – $7.25 per hour
4. Iowa – $7.25 per hour
5. Kansas – $7.25 per hour
6. Kentucky – $7.25 per hour
7. Mississippi – $7.25 per hour
8. North Carolina – $7.25 per hour
9. North Dakota – $7.25 per hour
10.Tennessee – $7 2035-20320;h’potential impacts to the local economy if New Jersey raises its minimum wage include:

1.Increased labor costs for businesses: Raising the minimum wage would mean that employers would have to pay their workers more, which could result in higher labor costs.

2.Impact on small businesses: Small businesses may struggle to afford the increased wages, potentially leading to layoffs or decreased hiring.

3.Potential job loss: Some businesses may not be able to afford the increased wage and may choose to cut jobs or increase automation instead.

4.Inflation: Some argue that raising the minimum wage could lead to inflation as businesses pass on the increased labor costs to consumers.

5.Balancing out regional disparities: States with lower minimum wages may attract businesses looking for cheaper labor, potentially leading to an economic shift away from New Jersey.

6.Impact on low-income families: Increasing the minimum wage can raise income levels for low-wage workers and potentially alleviate poverty levels.

Ultimately, it is difficult to predict all potential impacts of raising the minimum wage in New Jersey, but it is important for policymakers and stakeholders to carefully consider all factors before making a decision that could significantly impact both businesses and workers in the state.

20. Are there any plans for regional variations or different thresholds for minimum wages based on factors such as population density or median income levels within New Jersey?


As of now, there are no specific plans for regional variations or different thresholds for minimum wages in New Jersey. However, the state’s Department of Labor and Workforce Development does conduct regular research and analysis on the economic conditions in different regions of the state and may make recommendations for potential variations in minimum wage in the future based on these findings. Any changes to minimum wage laws would also need to be approved by the state legislature.