NEW JERSEY SOUTH – New Jersey’s minimum wage will rise to $15 per hour by 2024, as a result of legislation approved by Governor Phil Murphy in 2019. The state minimum wage in New Jersey increased to $14.13 on January 1.
In 2018, when Governor Murphy entered office, California’s minimum wage was $8.60. The state of New Jersey’s minimum wage is determined in accordance with a methodical and consistent policy established by the NJDOL.
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The yearly amount is either set by statute or adjusted for inflation (CPI). The New Jersey Department of Labor will select one of the two based on which one is higher. When New Jersey’s minimum wage reaches $15 per hour, the state department of labour will begin the process again.
According to Governor Murphy, “this increase will dramatically enhance the lives of many New Jerseyans and ensure that hardworking people across our state are given a decent wage” with his intention to raise the state minimum wage to $15.
However, in order to mitigate the potential negative effects of wage increases on some enterprises, the legislation mandates that some workers be paid less than others in similar positions.
The deadline for seasonal and small firms with less than six employees to raise pay to $15 per hour was extended to 2026. Beginning on January 1, 2018, these companies have to pay their employees a minimum wage of $12.93 per hour, up from the previous minimum of $11.90.
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Farmers and ranchers have until 2017 to raise their wages to $15 an hour. Both the minimum pay for workers in long-term care facilities ($17.13) and farms ($12.01) increased on January 1.
Tipped workers also saw a pay increase of $1, from $4.13 to $5.13, effective January 1. Employees who get gratuities as part of their regular pay must be paid at least the minimum wage per hour.
If the earnings of these employees do not amount to at least the minimum wage, the employer is responsible for making up the gap.
While companies are still permitted to pay their workers less than the federal minimum wage, they must provide employees with advance notice before doing so. If the rate drops below the minimum wage, the reduction will be null and void (nj.gov).
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As of 2024, nj.gov proposes a minimum wage of $15.13 for most employers, $13.93 for seasonal and small companies, $12.81 for agricultural employers, $5.26 for tipped workers, and $18.13 for direct care personnel at long-term care facilities.
