>>>> ICYMI: New Jersey’s statewide minimum wage increased by $0.43 to $15.92 per hour for most employees, effective January 1, 2026. The minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028. The minimum hourly wage for these employees will increase to $15.23 on Jan. 1, up from $14.53. NJDOL sets the minimum wage for the coming year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. When outgoing Gov. Murphy took office in 2018, the mandated minimum wage was $8.60 per hour. <<<<<

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Small Business Optimism Edged Up in New Jersey and Nationwide in December

The NFIB Small Business Optimism Index rose 0.5 points in December to 99.5 and remained above its 52-year average of 98. Of the 10 Optimism Index components, two increased, three decreased, and five were unchanged. An increase in those expecting better business conditions primarily drove the rise in the Optimism Index. The Uncertainty Index fell 7 points from November to 84, the lowest reading since June 2024.

“While optimism is improving nationally in NFIB’s survey, New Jersey’s small business owners are still contending with an onerous state tax and regulatory environment,” said NFIB State Director Eileen Kean. “Additionally, as the monthly survey continues to show, many of New Jersey’s Main Street businesses are still having a tough time finding and keeping good workers. That makes it harder for them to maintain the operating hours and provide the level of service their customers expect.”

Twenty percent of small business owners reported taxes as their single most important problem, up 6 points from November and ranking as the top problem. This is the highest reading since May 2021.

As reported in NFIB’s monthly jobs report, a seasonally adjusted 33% of all small business owners reported job openings they could not fill in December, unchanged from November. Unfilled job openings remain above the historical average of 24%. Of the 53% of owners hiring or trying to hire in December, 91% reported few or no qualified applicants for the positions they were trying to fill. A seasonally adjusted net 17% of owners plan to create new jobs in the next three months, down 2 points from November.

“Difficulty finding qualified workers in New Jersey and nationwide continues to be a drag on the small business economy,” said State Director Kean.”

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Governor Murphy Signs Expanded Paid Family Leave Mandate on the Way Out

The day before leaving office, Gov. Phil Murphy signed a bill to expand family leave benefits to workers at smaller companies.  The bill allows workers at firms with as few as 15 employees to take job-protected paid family leave, down from 30 workers in the state’s prior family leave law.

Existing New Jersey law permits workers to take up to 12 weeks of paid family leave to bond with new children or care for a sick or injured loved one. To be eligible under current law, an employee must have worked at a given employer for at least 12 months and have worked at least 1,000 hours in the preceding 12 months.

The bill Murphy signed cuts those qualifications, requiring workers to be with their employer for at least three months and slashing the hours requirement to 250. Workers on family leave can earn up to 85% of their weekly pay, to a cap of $1,119 in 2026.

The legislation says workers are entitled to be restored to their previous position or one with equivalent pay, benefits, and seniority upon returning from family leave. It also explicitly allows workers to use family leave, temporary disability benefits, and earned sick leave in the order of their choosing.

The new law takes effect 6 months from January 19.