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.
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Why Every Business Should Conduct an Annual Insurance Coverage Review
Most New Jersey business owners purchase insurance policies, file them away, and assume they are protected if a claim arises. Without a regular insurance coverage review, many companies discover gaps only after a lawsuit, cyberattack, property loss, or other significant event occurs. An annual insurance coverage review can help businesses identify potential risks, ensure their […]
Demand Letters & Cease and Desist Letters: When to Send One (and When Not To)
Businesses and individuals often encounter situations where another party breaches a contract, fails to pay a debt, or continues harmful conduct. In many such disputes, a precisely drafted demand letter or cease-and-desist letter serves as a powerful legal tool. It can frequently resolve the dispute and avoid litigation. While demand or cease-and-desist letters can resolve […]
Key provisions in your contracts, including those relating to indemnification, insurance, and defense, are essential to contract risk management. While sometimes considered “boilerplate,” these provisions play a pivotal role when determining which party is responsible for certain costs and liabilities. They must always be negotiated and drafted carefully. Indemnification Clauses Businesses should never overlook the […]
Portability of estate and gift tax enables a surviving spouse to inherit any unused portion of their deceased spouse’s federal estate and gift tax exemption. So, if one spouse doesn’t utilize their full exemption, the surviving spouse can effectively double their exemption amount with regard to estate tax liability. For married couples, portability offers a […]
Pet Trusts in New Jersey and New York: A Practical Estate Planning Tool
For many of us, pets are more than companions—they are members of the family. Yet they are often overlooked or inadequately provided for when it comes to estate planning. A pet trust offers a legally enforceable way to ensure that your animal continues to receive proper care if you become incapacitated or pass away. As […]
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
