New Jersey Enacts $15 Per Hour Minimum Wage
On February 4, 2019, Governor Murphy signed into law a minimum wage increase that will increase New Jersey's minimum wage for most workers from $8.85 to $15 per hour by 2024. The $15 per hour minimum wage will be phased in according to the following schedule:
Effective Date New Minimum Wage
July 1, 2019: $10 per hour
January 1, 2020: $11 per hour
January 1, 2021: $12 per hour
January 1, 2022: $13 per hour
January 1, 2023. $14 per hour
January 1, 2024: $15 per hour
After 2024, the minimum wage will continue to increase based upon the consumer price index for all urban wage earners and clerical workers (CPI-W).
The law provides for a longer phase in of the new minimum wage for employees of small employers (those with less than six employees) and seasonal employees. Such employees will be entitled to a minimum wage increase from the current $8.85 per hour minimum wage to $10.30 per hour on January 1, 2020, and with yearly increases thereafter to reach the $15 per hour minimum wage by 2028.
For most New Jersey employers, this law will result in the second minimum wage increase this year. Employers should be prepared to adjust their pay practices and payroll systems to comply with the July 1st deadline.
If you have questions about your business's wage and hour compliance, please call us at (201) 345-5412 or use our online scheduling page to set up a complimentary consultation.