Definition of Minimum Wage in NJ

Minimum wage is the lowest wage that employers are legally required to pay their employees. In the United States, the federal minimum wage has been established by the Fair Labor Standards Act of 1938 and has been revised over the years as economic times have changed. All state governments, including New Jersey, are also allowed to set their own minimum wage.

New Jersey Minimum Wage Laws

The current New Jersey minimum wage is $10.00 per hour. This is an increase from the previous minimum wage of $8.60 per hour. The increase was adopted in 2019 as part of an agreement between the state legislature and the governor. The New Jersey minimum wage will continue to increase over the next several years, reaching $15.00 per hour by 2024.

For tipped workers, the current minimum wage set by New Jersey is $2.13 per hour plus tips. If the tips earned by the tipped workers do not add up to the state’s minimum wage, the employer must pay the difference. The tipped minimum wage in New Jersey has not yet been increased, but it is expected to be raised in the near future.

There are some exceptions to the state minimum wage law. The state recognizes certain youth workers, certain agricultural and farm workers, certain student learners, certain learners in internships, certain homeworkers, certain disabled workers, and certain drug and alcohol counselors as exempt from the statutory minimum wage.

Impact of Minimum Wage Increase on NJ Residents

The minimum wage increase in New Jersey is having a significant impact on workers in the state. According to the Economic Policy Institute, an estimated 817,000 workers are affected by the minimum wage increase, with around 85 percent of the beneficiaries being adults. Nearly 78 percent of the workers who will benefit from the minimum wage increase are women.

The impact on the state’s businesses has been less clear. Some businesses have expressed concerns over the increased labor costs, while others have expressed their willingness to absorb the increased costs and pass it on to the consumers in the form of higher prices. Despite the potential cost increase for business, the state is however optimistic about the overall impact of the minimum wage increase on its citizens and the economy as a whole.

Conclusion

The minimum wage increase in New Jersey is a positive step towards ensuring that all workers in the state are paid a minimum wage that is more in line with the cost of living. The increase is a win-win situation for workers and businesses, who both stand to gain from the higher wages. The hope is that with the increased wages, workers will be able to make ends meet and contribute more to the economy.