For most workers, the minimum wage will increase to $10 on July 1.
This past February, New Jersey Governor Phil Murphy signed legislation that would raise the minimum wage from $8.85 per hour to $15 per hour by 2024. New Jersey’s plan sets forth an incremental set of increases beginning July 1 and ending in 2024. For most workers, the minimum wage will increase as follows: $10 on July 1, $11 on January 1, 2020, and a $1 increase every subsequent January 1 until it reaches $15 in 2024.
Wage increases would then be tied to the consumer price index for all urban wage earners and clerical workers, or CPI-W, taking effect on the first of every year. Employers would be able to pay “training wages,” equal to at least 90 percent of the minimum wage, for the first 120 hours of work by people enrolled in a training program, starting in 2020.
There are several exceptions to the increase schedule: seasonal workers (job falls between May 1 to September 30), small employers (5 employees or less), agricultural workers, and tipped workers. The schedule for these groups are more drawn out.
Seasonal workers’ and small employers’ salaries will increase to $10.30 on January 1, 2020. There will be an $0.80 increase every subsequent January 1 until reaching $14.30 in 2025. On January 1, 2026, there will be a $0.70 increase to $15. Income increases would then be tied to the consumer price index, plus a little extra so that the minimum wage for these workers is the same as the first group by 2028.
Agricultural workers will see an increase to $10.30 on January 1, 2020, another increase to $10.90 on January 1, 2022, and an $0.80 increase every subsequent January 1 until reaching $12.50 in 2024. Future increases would then be tied to the consumer price index. Additionally, in 2024, the heads of Agriculture and Labor and Workforce Development would have to study whether to raise wages further for agricultural workers. If an agreement is not reached, the governor will nominate a tie-breaking member subject to Senate confirmation.
Tipped workers’ incomes will increase to $15 per hour by 2024. Tipped workers must earn at least the minimum wage through a combination of tips and salary. Base pay that employers are required to provide is set to increase from the current $2.13 to $2.63 on July 1, 2019, $3.13 on January 1, 2020, $4.13 on January 1, 2021, and to $5.13 an hour by 2024. Increases after 2025 would then be tied to the consumer price index.
