New Jersey joins a national trend of at least ten states that have tied their minimum wage increases to inflation after voters approved an amendment to the State Constitution on November 5, 2013. Cost-of-living adjustments will occur every September 1 and are tied to the Consumer Price Index. Voters also approved an increase in minimum wage from $7.25 per hour to $8.25. New Jersey’s increase of $1.00 in 2014 is more than the 2014 minimum wage increase of Connecticut and New York, but both states increase to $9 in subsequent years.
Connecticut’s minimum wage will increase from $8.25 to $8.70 on January 1, 2014, and to $9 a year later. New York’s minimum wage will increase from $7.25 to $8.00 on December 31, 2013, to $8.75 on December 31, 2014, and to $9 on December 31, 2015. Neither state has taken the step to tie future increases to inflation.
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 203.965.0560.
