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.