ALERT: New Jersey Raising Minimum Wage to $15

Thomas J. Szymanski

As we reported last week, New Jersey employers need to get ready for minimum wage increasing to $15 per hour. The bill, which passed on party lines last Thursday, was signed into law today by Governor Murphy. It provides the following timetable to raise the minimum wage:

  • $15 per hour by 2024, for most minimum wage earners;
  • $15 per hour by 2026, for minimum wage earners at seasonal businesses and small businesses;
  • $12.50 per hour by 2024, for agricultural minimum wage earners; and
  • $5.13 per hour by 2022, for tipped earners.

Of immediate attention to employers are the first increases on the road to $15:

Regular Schedule—Applicable to minimum wage workers unless an exception applies

  • Currently: $8.85 per hour
  • July 1, 2019: $10.00 per hour
  • January 1, 2020: $11.00 per hour

Seasonal Workers and Small Business Schedule—Applicable to seasonal workers (employed between May 1 and September 30) and employees at small businesses (business with five or fewer employees)

  • Currently: $8.85 per hour
  • January 1, 2020: $10.30 per hour

Agricultural Schedule—Applicable to employees engaged on a piece-rate or regular hourly rate basis to labor on a farm

  • Currently: $8.85 per hour
  • January 1, 2020: $10.30 per hour

Tipped Schedule—Applicable to employees who customarily and regularly receive gratuities or tips

  • Currently: $2.13 per hour
  • July 1, 2019: $2.63 per hour
  • January 1, 2020: $3.13 per hour

As minimum wage violations carry significant penalties in New Jersey, you should contact a member of Blank Rome’s labor & employment practice group if you have any questions about compliance with New Jersey’s minimum wage increase or any other wage and hour issues.

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