New Jersey to hike minimum wage

New Jersey’s minimum wage will go up by $1, to $11 per hour for most employees, on Jan. 1, 2020.

The remaining employees fall into categories whose wage will go up on a different timetable. For example, those who engage in seasonal employment, work on a farm for an hourly or piece-rate wage, or who work for an employer with fewer than six employees will see their minimum wage increase to $10.30 per hour.

“I am proud to say that New Jersey continues to move forward on a path to a $15 per hour minimum wage,” said Gov. Phil Murphy. “We believe that every resident deserves the opportunity to join the middle class. Our progress on fair and equitable wages demonstrates our state’s commitment to fighting for economic justice and a stronger and fairer economy that works for every family.”

“We firmly believe all workers have the right to earn a fair, family sustaining wage,” said Labor Commissioner Robert Asaro-Angelo. “We applaud Gov. Murphy’s leadership in enacting a $15 minimum wage law, and will continue as a department to vigorously investigate wage and hour complaints.”

The landmark law that Gov. Murphy signed in February incrementally increases the minimum wage to $15 in 2024 for most employees, but gives seasonal, small, and agriculture employers more time to reach the minimum of $15 per hour.

The Labor Department sets the minimum wage for the coming year using either the rate specified in the law or a calculation based on the Consumer Price Index (CPI), whichever is higher. For 2020, the CPI-based calculation would put the wage at $10.15 for most employees and $8.98 for those on the alternate timetable, significantly lower than the increase they will see thanks to the law.

The law also establishes a credit that employers of tipped employees may take against the $11 minimum wage next year. Employers who elect to take the tip credit will be required to pay their tipped employees a cash wage of at least $3.13 per hour.

Once the minimum wage reaches $15 per hour, the state Constitution specifies that it continue to increase annually by the rate of inflation. Last Jan. 1, before the state’s new minimum wage law was signed, New Jersey’s minimum wage went up 25 cents to $8.85 per hour.