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.
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
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!
