Assembly Speaker Craig Coughlin Recently Introduced a Bill Proposing a Minimum Wage Increase in New Jersey
New Jersey’s minimum wage would gradually increase over the next six years to $15/hour under a bill recently introduced in the Legislature. The legislation, introduced by Assembly Speaker Craig Coughlin, seeks to balance the interests of workers and the business community. However, it will likely remain controversial.
The bill provides that, for most workers, the minimum wage rate would increase over time until it eventually reaches $15/hour. The increase would begin with wages up to $9.50 per hour on July 1, 2019, to $11.00 per hour on January 1, 2020, and then increase by $1.15 per hour on January 1 of each year from 2021 to 2024, reaching a level of $15.00 per hour in 2024.
The bill contains several exceptions that would slow wage increases for certain classes of workers, including workers under the age of 18, farm laborers, seasonal workers, and workers at businesses with fewer than 10 employees. For those workers, the minimum wage rate would be increased to $10.10 per hour on January 1, 2020, to $10.35 per hour on January 1, 2022, to $10.70 per hour on January 1, 2023, to $11.10 per hour on January 1, 2024, to $11.70 per hour on January 1, 2025, to $12.45 per hour on January 1, 2026, to $13.20 per hour on January 1, 2027, to $14.10 per hour on January 1, 2028, reaching a level of $15.00 per hour on January 1, 2029.
The bill defines “seasonal employment” as employment for which, during the previous calendar year, not less than two-thirds of the employer’s gross receipts were received in a continuous period of not more than thirteen weeks. Meanwhile, “small employer” means an employer who employed less than ten employees for every working day during a majority of the calendar workweeks in the current calendar year and the preceding calendar year.
As for tipped workers, businesses who employ workers who customarily and regularly receive gratuities or tips would be entitled to a credit for the tips received by the worker against the hourly minimum wage rate paid to the worker in the following amounts: after December 31, 2018 and before July 1, 2019, $6.72 per hour; after June 30, 2019 and before January 1, 2020, $7.37 per hour; during calendar year 2020, $7.87 per hour; during calendar year 2021, $7.42 per hour; during calendar year 2022, $7.57 per hour; during calendar year 2023, $8.72 per hour; during calendar year 2024 and subsequent calendar year, $9.87 per hour.
Minimum Wage Hike Will Affect New Jersey Businesses
In the New Jersey Business & Industry Association’s 60th Annual Business Outlook Survey, the NJBIA polled member businesses about the impact of a potential increase in the state’s minimum wage. Of the respondents, 66 percent said a minimum wage hike will impact their business. In addition, 39 percent said the impact would be significant.
Approximately one third of businesses reported that they would need raise prices to offset the increased costs associated with raising the minimum wage. Another quarter stated that they would reduce staff and/or hours.
Likelihood of Passage
While Gov. Phil Murphy has made raising the minimum wage to $15 a top priority, he has previously stated that he wants the change implemented with no exceptions. Senate President Stephen Sweeney supports the plan. “The Speaker’s legislation gives us a working document that will move our efforts to enact a needed wage increase forward,” Sweeney said.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Scott Heck, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
How Will The Proposed Minimum Wage Increase Impact New Jersey Businesses?
Author: Scarinci Hollenbeck, LLC
Assembly Speaker Craig Coughlin Recently Introduced a Bill Proposing a Minimum Wage Increase in New Jersey
New Jersey’s minimum wage would gradually increase over the next six years to $15/hour under a bill recently introduced in the Legislature. The legislation, introduced by Assembly Speaker Craig Coughlin, seeks to balance the interests of workers and the business community. However, it will likely remain controversial.
The bill provides that, for most workers, the minimum wage rate would increase over time until it eventually reaches $15/hour. The increase would begin with wages up to $9.50 per hour on July 1, 2019, to $11.00 per hour on January 1, 2020, and then increase by $1.15 per hour on January 1 of each year from 2021 to 2024, reaching a level of $15.00 per hour in 2024.
The bill contains several exceptions that would slow wage increases for certain classes of workers, including workers under the age of 18, farm laborers, seasonal workers, and workers at businesses with fewer than 10 employees. For those workers, the minimum wage rate would be increased to $10.10 per hour on January 1, 2020, to $10.35 per hour on January 1, 2022, to $10.70 per hour on January 1, 2023, to $11.10 per hour on January 1, 2024, to $11.70 per hour on January 1, 2025, to $12.45 per hour on January 1, 2026, to $13.20 per hour on January 1, 2027, to $14.10 per hour on January 1, 2028, reaching a level of $15.00 per hour on January 1, 2029.
The bill defines “seasonal employment” as employment for which, during the previous calendar year, not less than two-thirds of the employer’s gross receipts were received in a continuous period of not more than thirteen weeks. Meanwhile, “small employer” means an employer who employed less than ten employees for every working day during a majority of the calendar workweeks in the current calendar year and the preceding calendar year.
As for tipped workers, businesses who employ workers who customarily and regularly receive gratuities or tips would be entitled to a credit for the tips received by the worker against the hourly minimum wage rate paid to the worker in the following amounts: after December 31, 2018 and before July 1, 2019, $6.72 per hour; after June 30, 2019 and before January 1, 2020, $7.37 per hour; during calendar year 2020, $7.87 per hour; during calendar year 2021, $7.42 per hour; during calendar year 2022, $7.57 per hour; during calendar year 2023, $8.72 per hour; during calendar year 2024 and subsequent calendar year, $9.87 per hour.
Minimum Wage Hike Will Affect New Jersey Businesses
In the New Jersey Business & Industry Association’s 60th Annual Business Outlook Survey, the NJBIA polled member businesses about the impact of a potential increase in the state’s minimum wage. Of the respondents, 66 percent said a minimum wage hike will impact their business. In addition, 39 percent said the impact would be significant.
Approximately one third of businesses reported that they would need raise prices to offset the increased costs associated with raising the minimum wage. Another quarter stated that they would reduce staff and/or hours.
Likelihood of Passage
While Gov. Phil Murphy has made raising the minimum wage to $15 a top priority, he has previously stated that he wants the change implemented with no exceptions. Senate President Stephen Sweeney supports the plan. “The Speaker’s legislation gives us a working document that will move our efforts to enact a needed wage increase forward,” Sweeney said.
If you have questions, please contact us
If you have any questions or if you would like to discuss the matter further, please contact me, Scott Heck, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
