New Jersey legislators have reached an agreement to gradually increase the state minimum wage to $15 an hour for most employees. The first increase will occur this July 1 and will increase the wage to $10 per hour. This will be a $1.15 per hour jump. The wage will climb to $15 by 2024, and could subsequently increase even further based on inflation adjustments. Small businesses (those with five or fewer employees) and seasonal and farm workers would either reach $15 per hour more slowly or not at all.
New Jersey is the latest in a series of states to adopt a $15 per hour minimum wage, including New York, Massachusetts, and California. This is the result of a concerted nationwide push by the Fight For $15 movement (spearheaded by the SEIU and other labor organizations). Due to continued gridlock on this issue at the federal level, other states may follow suit and take matters into their own hands. We expect states with a strong Democratic Party presence in state government will be most likely to pass similar increases, while Republican-controlled states will likely take a more business-oriented approach. We will continue to monitor these developments and update you as necessary.
Brody and Associates regularly advises management on complying with the latest state and federal employment laws. If we can be of assistance in this area, please contact us at info@brodyandassociates.com or 203.454.0560.
