Despite calls from New Jersey’s business community to hit the pause button on the planned $1 hike in New Jersey’s minimum wage, Gov. Phil Murphy said the increase to $12 an hour in January will go as planned.
“I signed (the $15 minimum wage law) for a reason, and that is to get as many people out from under the poverty line as possible,” Murphy said in a Thursday press briefing.
NJBIA had long been an advocate for an “off-ramp” for the planned $15 minimum wage by 2024 in the event of an economic emergency or natural disaster. With the arrival of coronavirus, NJBIA has been pushing a pause for the rate hike while New Jersey is in a state of emergency.
NJBIA President and CEO Michele Siekerka told NJ101.5 news this week that the added $1 will have greater impact when multiplying several employees per hour, on top of new costs related to coronavirus – not to mention less revenue coming in due to COVID-19 restrictions.
“One dollar can be the difference between staying open and shuttering,” Siekerka said.
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With his new executive order restricting restaurants to expand their capacity from 25 to 50% and now with raise in minimum wage what does he think will happen. Restaurants can not survive on 25% capacity, especially now that outdoor seating is no longer viable with winter coming. Gov. Murphy talks of poverty level but restaurants will layoff people due to lack of profits due to the capacity and wage increase. These people will go on unemployment and what happens to the so-called poverty level then.
When will NJBIA wake up to the fact that Gov. Murphy has hijacked this virus and is using it for his own political ends?