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The state's minimum wage is slated to climb on January 1, 2022 giving the state's lowest-paid workers a pay raise to kick off the new year.
Under a state law approved by Gov. Phil Murphy in 2019, most minimum-wage workers will see a $1 raise to $13 per hour. By 2024, the state's minimum wage will have increased to $15 per hour.
Small and seasonal firms have two more years to reach $15 per hour in order to mitigate the impact on their company. According to the state Department of Labor, employees of such businesses will receive a rise of 80 cents per hour, from $11.10 to $11.90.
Direct-care workers in long-term care facilities will earn $1 more per hour, bringing their hourly wage to $16.
Tipped workers, such as waiters and waitresses, will see their base rate jump to $5.13 per hour, while agricultural workers would see their basic rate rise to $11.05 per hour. The law mandates employers to make up the difference between $5.13 per hour and $13 per hour for tipped employees, but it also permits companies to collect a $7.87 tip credit.
The state Labor Department determines the minimum wage for the coming year by utilizing the law's rate or a formula based on the Consumer Price Index, whichever is higher. The state Constitution mandates that once the minimum wage hits $15 per hour, it will continue to rise annually in line with any increase in the Consumer Price Index.
The minimum wage hike comes as a number of businesses report that they are still having trouble filling positions due to a labor shortage that has persisted since the spring. Even though they have offered signing bonuses, health insurance, and other perks to attract employees, fast food and conventional restaurants, convenience stores, and other retail establishments still have "help wanted" signs up.
Because of the labor crisis, many employers have already upped their wages, and while larger corporations advertised hourly pay of $15 or $16 for holiday workers, it's unknown how many employers are currently paying above the minimum wage.
The rise in the minimum wage comes at a horrible moment for businesses already struggling due to the effects of the epidemic, according to the New Jersey Business and Industry Association.
New Jersey is one of 29 states having a minimum wage that is higher than the federal minimum wage of $7.25 an hour, which has remained unchanged since 2009. Minimum wage rises are set to take effect in twenty-one states on Saturday.
