By Sunayana Prabhu
On Jan. 1, the minimum wage in the Garden State increased to $15.13 per hour, surpassing the goal of $15 set in 2019 by the Legislature and Gov. Phil Murphy. Although New Jersey is now one of the few states to hit the $15 mark, not everyone is celebrating.
Many small businesses still reeling from the impacts of the COVID-19 pandemic are concerned about how they will weather the increase.
“While we understand the need for an increase in minimum wage especially in an expensive state like New Jersey, the $15 hourly rate has hit small businesses hard,” said Jennifer Eckhoff, executive director, Eastern Monmouth Area Chamber of Commerce (EMACC), a member-driven organization serving businesses in Two River area towns since 1928.
Eckhoff said many businesses “already operate on small margins and with increases across all supply chains already causing higher prices to consumers, the $15 hourly wage has made the business climate challenging and burdensome.”
In order to ease the financial burden on employers, the state law has devised timetables for different types of businesses to reach the minimum rate hike, so not all hourly workers will instantly see their paychecks rise.
The most recent pay hike impacts about 350,000 of New Jersey’s roughly 1.9 million hourly workers. According to details on the New Jersey Department of Labor’s (NJDOL) website, seasonal employers and businesses with six or fewer employees have until 2026 to meet the $15 per hour threshold. The minimum hourly wage for these employees increased to $13.73 per hour on Jan. 1, up from $12.93 per hour.
Agricultural workers will have to wait until 2027 to reach the $15 per hour minimum wage. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase by 80 cents to $12.81 per hour. Additionally, long-term care facility direct care staff will see their minimum wage rise by $1 to $18.13 per hour. Many are applauding the change.
Business for a Fair Minimum Wage, a national network of business owners, executives and business organizations, has favored the increased minimum wage and posted a statement on its website, noting this year “22 states and 43 cities and counties are increasing the hourly minimum wage.”
A few businesses also supported the change, sharing an optimistic outlook in the statement. “I think it gives me a lot of benefits in terms of recruiting, in terms of productivity, in terms of turnover,” said Aaron Seyedian, owner of Well-Paid Maids.
Gina Schaefer, founder and co-owner of A Few Cool Hardware Stores, said, “The more money our consumers have, the more they’ll spend in our stores. So that seems a little selfish, but I also think it extends to all the small businesses in our communities.”
Murphy sees the minimum wage increase as a significant accomplishment for the state.
“There is no doubt that inflation has had an impact on every New Jerseyan. Now that we are close to surpassing the $15 per hour milestone, it’s important that we continue to ensure that everyone working in New Jersey has access to a livable wage,” he said in a Dec. 27, 2023, statement.
The increased hourly rate is also a sign that the state values its workforce, noted Labor Commissioner Robert Asaro-Angelo in the statement. “This is a proud moment for New Jersey as we become one of the few states with a minimum wage above $15 an hour that will continue to be adjusted each year for inflation.”
The minimum wage for the coming year is determined by the New Jersey Department of Labor and Workforce Development by using either the rate specified in the law or a calculation based on the Consumer Price Index (CPI), whichever is higher. The state constitution specifies that the minimum wage be adjusted annually based on the CPI.
The article originally appeared in the January 18 – January 24, 2024 print edition of The Two River Times.
