New Jersey Monitor
By NIKITA BIRYUKOV
Republished with permission from New Jersey Monitor
New Jersey’s hourly minimum wage rose to $15.49 with the new year, completing its first inflation-adjusted increase following a five-year phase-in that brought the state’s wage floor to above $15.
The roughly 2 percent increase to the minimum wage comes after years of sharper increases that raised New Jersey’s minimum wage by at least $1 per year.
“This raise accounts for higher costs of living and builds upon the Administration’s efforts to create a stronger, fairer economy that supports the middle class and alleviates wealth inequality. Increasing affordability has been a key objective over the last seven years, showcased by numerous legislative accomplishments and large investments to address issues such as housing, education, and health care,” said Kiran Sheth, a spokesperson for Gov. Phil Murphy.
New Jersey imposed a $8.85 minimum wage on most workers before Murphy signed legislation raising it to at least $15 by 2024.
The latest increase leaves New Jersey with the sixth-highest statewide minimum wage in the nation. It’s higher in California, Connecticut, New York, Washington, and the District of Columbia.
Some other states have a higher wage floor set in urban areas. In the metropolitan area around Portland, Oregon, for example, hourly wages can be no less than $15.70, though the state imposes a minimum wage of $14.70.
New Jersey’s minimum wage law included annual inflation indexing after the initial five years. The consumer price index for urban wage earners and clerical workers — the measure the law uses to track inflation — rose by about 2.4 percent in the 12 months preceding Oct. 1.
Not all workers are subject to the base minimum wage. The wage floor for seasonal employees and businesses with no more than five workers rose to $14.53 an hour, from $13.73.
Tipped workers’ minimum wages rose to $5.62. Such workers can claim additional pay that would bring their wages to $15.49 if they did not earn at least that much with tips included.
The wage floor for certain long-term care workers rose to $18.49.
