This Happens to NJ’s Minimum Wage on July 1
Hundreds of thousands of New Jerseyans are days away from getting a raise. For many, it will be $1.15 more per hour. Our current minimum wage of $8.85 goes up to $10.00 per hour on Monday July 1. This is the first step on the road to a $15.00 minimum wage Gov. Murphy signed into law earlier this year.
Here are the details.
$10.00 on July 1 2019
$11.00 on January 1 2020 (also beginning in 2020 a 'training wage' goes into effect. That will be at least 90% of the minimum wage for the first 120 hours of work being done by people while they learn the job. This is only the first month of a full-time job and is only a small capitulation, a tossed bone if you will, to businesses that will no doubt struggle to meet the new minimum wage.)
$12.00 on January 1 2021
$13.00 on January 1 2022
$14.00 on January 1 2023
$15.00 on January 1 2024
It doesn't even end there. At that point wage increases would be tied to the consumer price index and would take effect on the first of every year.
There are some exceptions to the new rules. A seasonal worker, someone whose job falls in the window of May 1 to September 30, has a lower minimum wage. So will workers at a company employing five or fewer employees, which of course discourages small business owners from expanding.
The minimum wage for this category of worker will be as follows.
No raise this year.
$10.30 on January 1 2020
$11.10 on January 1 2021
$11.90 on January 1 2022
$12.70 on January 1 2023
$13.50 on January 1 2024
$14.30 on January 1 2025
$15.00 on January 1 2026
Increases will then be tied to the consumer price index and a bit extra so that this group of workers hourly pay would finally be equal to the first group's pay.
Confused yet? No? Maybe this will do it. Agricultural workers have been put into a third category and will take even longer to close the gap to $15.00.
$10.30 on January 1 2020
$10.90 on January 1, 2022
$11.70 on January 1, 2023
$12.50 on January 1, 2024
It stops there and in the chart provided by the Assembly Majority Office the years after that are subject to "legislative approval per the recommendation of the Commissioner of DOWLD and Secretary of Ag.." Ooookayyyy.
Oh, one more thing just to make it more complicated. Tipped workers will have their current $2.13 per hour go to $5.13 per hour by 2024 but just like now they must earn at least the minimum wage when combining tips and hourly pay.
So what's all this going to do to our economy? If you listen to Phil Murphy it's going to be rainbows and sunshine with prancing unicorns from here on out. If you listen to others it's going to be oppressive to small business and break the backs of many of them.
One thing that never gets addressed by progressives like Murphy is the trickle up effect. If you are making $16.50 right now because you have some skills not everyone walking through the door has, there's no way you will tolerate being kept at $16.50 when the guy fresh off the street is making $15.00. You will expect a commensurate increase to $22.65. More businesses with strained backs. Prices undoubtedly will increase. Not at first, but over time. Once that happens, your $15.00 per hour will someday buy what your $8.85 per hour buys now. For all this effort, not much will change. But enjoy your raises in the meantime.