New Jersey Employment Law Update – February 2019

New York Employment Law Update – February 2019
February 11, 2019
Michigan Employment Law Update – February 2019
February 11, 2019
New Jersey

Minimum Wage Increases

On February 4, 2019, New Jersey Governor Phil Murphy signed legislation (A.B. 15) that incrementally raises the state’s hourly minimum wage. Per the Governor’s press release, the current minimum wage in New Jersey is $8.85 per hour. Under the new law, the base minimum wage for New Jersey workers will increase to $10 per hour on July 1, 2019. By January 1, 2020, the statewide minimum wage will increase to $11 per hour, and then will increase by $1 per hour every January 1st until it reaches $15 per hour on January 1, 2024.

For seasonal workers and employees at small businesses with five or fewer workers, the base minimum wage will reach $15 per hour by January 1, 2026. By January 1, 2028, workers in these groups will receive the minimum wage inclusive of inflation adjustments that take place from 2024 to 2028, equalizing the minimum wage with the main cohort of New Jersey workers.

For agricultural workers, the base minimum wage will increase to $12.50 per hour by January 1, 2024. No later than March 31, 2024, the New Jersey Labor Commissioner and Secretary of Agriculture will jointly decide whether to recommend that the minimum wage for agricultural workers increase to $15 per hour by January 1, 2027, as specified in the bill. If they cannot come to an agreement, a third member, appointed by the Governor with the advice and consent of the Senate, will break the tie. If there is a recommendation to disapprove of the scheduled increases or suggest an alternative pathway, the Legislature will have the ability to implement that recommendation by passage of a concurrent resolution.

The following chart offers additional guidance:

Effective Date Regular Hourly Employees Small Employers & Seasonal Workers Agricultural Workers Tipped Employees Training Wage
7/1/19 $10.00 $8.85 $8.85 $2.13 N/A
1/1/20 $11.00 $10.30 $10.30 $2.63 N/A
1/1/21 $11.00 $11.10 $10.30 $3.13 $9.90
1/1/22 $13.00 $11.90 $10.90 $4.14 $10.80
1/1/23 $14.00 $12.70 $11.70 $5.13 $11.70
1/1/24 $15.00 $13.50 $12.50 $5.13 $12.60
1/1/25 $15.00 +
CPI-W
$14.30 $13.40 $5.13 +
CPI-W
$13.50
1/1/26 $15.00 +
CPI-W
$15.00 $14.20 $5.13 +
CPI-W
$13.50 + CPI-W

The law also:

  • Requires employers to abide by an applicable wage order issued by the New Jersey Commissioner of Labor and Workforce Development.
  • Adds an overtime exemption for any individual employed in a bona fide executive, administrative, or professional capacity.

Read NJ A.B. 15 and the press release

Out of State Businesses Tax and Fee Exemptions

On January 31, 2019, New Jersey Governor Phil Murphy signed legislation (S.B. 2518) excluding out-of-state businesses and employees from certain taxes, fees, and business registration requirements when temporarily restoring critical infrastructure during a declared disaster or emergency.

The law took effect on January 31, 2019.

Read NJ S.B. 2518

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