On January 1, 2020 the minimum wage increased to $11 and will increase $1 every year until reaching $15 per hour in 2024. The minimum wage for small businesses with less than six employees, seasonal businesses, and farm labor is now set at $10.30 and will increase to $15 at a slower rate.
The minimum wage increase was mandated by P.L.2019, C.32, a law which Governor Phil Murphy signed on February 4, 2019. The new law took effect on July 1, 2019 with the minimum wage increasing to $10 per hour for most employers. NJBIA has compiled a Fast Facts document that breaks it all down, and offers members a handy chart on when the different provisions of the law take effect.
While the bill signed into law did not address many business owners concerns, NJBIA continues to work with the Legislature to enact legislation to help mitigate the potential negative impact on New Jersey businesses.
The following bills have already been introduced:
- S-3607 / A-5226 – Provides for suspension of scheduled minimum wage increases for economic reasons.
- S-3609 / A-5227 – Provides gross income tax credits for certain employers for certain costs arising from increase in minimum wage.
- S-3608 / A-5228 – Establishes task force to study impact of minimum wage increases on businesses.
- S-3483 / A-5103 – Provides tax credits for certain employers for employees less than 18 years old.
NJBIA does not expect these bills to pass before the end of the 218th Legislative session in less than two weeks. We will, however, continue to work with the Legislature in the next legislative session to ensure that these bills get reintroduced and passed.
We will keep you updated on these and other minimum wage bills as they move through the legislative process.
NJBIA also wants to hear from businesses about how the minimum wage increase is impacting them including the impact of compression on the wages of higher paid employees. We will continue to relate these impacts in real time to our policymakers. Please email NJBIA at email@example.com to tell us the actions you’re taking to address higher labor costs.
Please let us know if you have questions or concerns.
Senior Vice President, Government Affairs