Wage hike could have cost the state 70,000 jobs.
What’s Next for the Minimum Wage in New Jersey?
For the second time as governor,
Chris Christie vetoed a bill that would have hiked the minimum wage in New
Jersey—this time, the increase would have been to $15 per hour. Gov. Christie’s
veto was not a surprise, but a welcome decision for small business owners.
However, unfortunately, the issue is
not dead. Democratic legislative leaders have said numerous times that if the
bill was vetoed, they would work to put the measure before voters as a
constitutional referendum on the November 2017 ballot. New Jersey’s current
method of determining the minimum wage is already enshrined in the state’s
constitution: now $8.38 per hour and adjusted annually for inflation. Under the
latest proposal, the state’s minimum wage would have increased to $10.10 per
hour on Jan. 1, 2017 and then by more than $1.25 until 2021, when it would
continue to increase annually based on inflation.
NFIB’s Research Foundation released
a study earlier this year showing that under a $15 minimum wage, New Jersey
could lose 70,000 jobs over the next 10 years and employers would be further
strained by not only higher wage costs, but also additional payroll taxes.
Ultimately, businesses would have to choose between cutting hours, laying off
workers, or shutting down.
NFIB/NJ has spoken out repeatedly
against this exorbitant wage increase and will continue to educate the public
on the harmful impact of this proposal. You can help, too: Use mobile app Wage Engage
to contact legislators and share how minimum wage legislation affects your
business and your employees.
