Minimum Wage At Blackboard Behind Stacked CoinsThe New Jersey Business & Industry Association supports legislation that would help mitigate the effects a $15-an-hour minimum wage would have on jobs for those under 18 years old by providing tax credits to employers who hire them.

The bill, S-3483 (Addiego, Singleton), is scheduled for a vote in the Senate Labor Committee today.

“One of the unintended consequences of increasing the minimum wage so dramatically is an unexpected decrease in the employment of high school students,” said NJBIA Vice President of Government Affairs Mike Wallace. “As the minimum wage increases, employers are going to be less likely to hire youth workers with limited skills.

“This in turn robs young people of the valuable after-school and summer-vacation work experience that so many people had growing up,” Wallace said. “This bill would make it feasible for an employer to hire someone under age 18.”

Specifically, the bill would provide an employer with a refundable tax credit against the corporation business tax or the gross income tax, as applicable, for the extra wages and payroll taxes paid to a worker under age 18.

The bill is one of several measures NJBIA is advocating for to help mitigate the negative effects of the minimum wage increase. They include an “economic off ramp” to suspend minimum wage increases in a severe recession or after a natural disaster, providing tax credits to businesses with 10 or fewer employees, and a requirement to study the impact of the minimum wage increase on the economy.


8 responses to “Minimum Wage Tax Credit for Under-18 Workers Gains NJBIA Support”

  1. Donald A Ferguson says:

    So the NJBIA is advocating that the taxpayers as a whole subsidize workers? Where do you think money comes from? You advocate pushing piles of money around like a shell game! The answer is lower minimum wage regulations for minors!

    • Tony Sabino says:

      I don’t see why they just don’t exempt workers below the age of 18 from the increased minimum wage? No administration of tax credits required! Why build an unnecessary bureaucracy to start with?

      • NJBIA says:

        Thank you for your feedback. NJBIA agrees that an exemption to the $15 minimum wage, or training wages, would have been preferable so that inexperienced teenagers are not shut out of summer and part-time job opportunities. In fact, we fought against the $15 minimum wage legislation exactly because it didn’t contain these and other carve-outs. While a tax credit for hiring workers under 18 is not the ideal solution to rectify the consequences of the new $15 minimum wage law, we support it because it will improve employment prospects for workers under 18 by giving businesses the financial incentive to continue to hire them.

  2. Jim says:

    The problem here is businesses like proprietorships and partnerships do NOT pay corporation business tax or the gross income tax because they are taxed at the owner level, not the business level.

  3. gary says:

    Why do they have to make it complicated? They can simply set a different minimum wage for under 18 employees the same way they have rules for
    hours, breaks etc. for minors. That would also save the employer workers comp insurance and payroll taxes.

  4. Andy says:

    How can Mr. Wallace say “…increasing the minimum wage so dramatically…” has resulted in “…an UNEXPECTED decrease in the employment of high school students…” UNEXPECTED? By who? Anticipating this job-killing legislation convenience, fast food, and grocery stores have been investing in self-checkout kiosks eliminating first job opportunities for kids. Trenton could admit it made a mistake and exempt high school workers from the minimum wage increase. But no! Trenton proposes a bureaucratic “fix” to the problem. The failure and increased cost of government occasioned by this Trenton “fix” will not be UNEXPECTED by me.

  5. Dave says:

    Funding the minimum wage increase with tax credits is NUTS! What I’m seeing more business do is pay workers under the table. The minimum wage increase was just to much.

  6. Sam says:

    Legislature; Told you so-“…Unexpected…” HA! Another example of deaf politicians.