By Stephen Appezzato
New Jersey is surpassing its minimum wage target of $15 per hour by 2024. The state Department of Labor (DOL) announced that in January the minimum wage for most workers will be $15.13 per hour.
When Gov. Phil Murphy took office in 2018, he made increasing the state minimum wage a legislative focus. At the time, the state minimum wage was $8.60 per hour.
In 2019 legislation was signed to increase the wage gradually each year from 2019 to 2024.
The state DOL dictates the minimum wage for the following year based on legislation in place or a calculation derived from the Consumer Price Index (CPI), depending on which wage would be higher.
The CPI is used to quantify cost of living trends. It is calculated based on a range of indexes and measures price changes experienced by consumers, according to the U.S. Bureau of Labor Statistics.
The DOL reported that once the minimum wage reaches its $15 per hour goal in January, it will continue to increase annually based on increases in the CPI, as per the state constitution.
While most employees are eligible for the upcoming minimum wage hike, some workers will face a delay. The original legislation outlined different wage benchmarks for certain workers.
Workers in the agricultural sector will follow a different minimum wage timeline. This track dictates the minimum wage will reach $15 per hour by 2027. In January, these workers will receive a boost from $12.01 to $12.81 per hour.
Seasonal and small businesses have until 2026 to move to the $15 per hour minimum wage to mitigate the impact on their business. Employees in this sector will see a $13.73 per hour minimum wage in January.
Lastly, direct care staff in long-term care facilities will have an $18.13 minimum wage next year – a wage increase of $1.
The minimum wage for workers who receive and rely on tips, such as servers, baristas and bartenders, will stay at $5.26 per hour. If their hourly wage including tips is less than $15, their employer is responsible for paying the difference to meet the minimum wage.
State Labor Commissioner Robert Asaro-Angelo praised the wage increase, calling it a “proud moment” and a “milestone” for New Jersey.
New Jersey will join a “handful” of other states who have pledged a minimum wage of $15 or more in the near future, he said, representing a nationwide push for increased wages. Currently, Washington, D.C. has the highest minimum wage in the county at $17 per hour.
The federal minimum wage remains at $7.25 per hour. Many states, particularly in the South, adhere to this as their state minimum wage; some are less than the federal rate or they may not have a state minimum wage.
The article originally appeared in the September 28 – October 4, 2023 print edition of The Two River Times.
