New Jersey Continues to Increase Minimum Wage, Making it Attractive for Migration
New Jersey is set to maintain its status as one of the states with the highest minimum wages in the United States. A law signed by Governor Phil Murphy in 2019 stipulates a gradual increase each year from 2020 to 2024, after which it will be governed by inflation. This legislation is beneficial for the state’s workforce, particularly its large Hispanic community, which accounts for 18.1% of the population of 8,791,000 residents.
The minimum wage in New Jersey was $8.60 per hour in 2018, a year before the law was signed. While this increase benefits employees, some employers have expressed concern about whether they will be able to sustain the higher wages due to the impact of the COVID-19 pandemic on businesses.
Most employees in New Jersey are protected by minimum wage laws, but there are exceptions for certain occupations such as automobile salespeople, third-party salespeople, and minors under 18 years of age, among others.
As of January 1, 2023, the minimum wage in New Jersey was raised to $14.13 per hour for most workers. Starting in January 2024, it will further increase to $15 per hour. However, for employees who receive tips, their minimum wage will remain at a minimum of $5.26 per hour, but their total earnings (including tips) must equal or exceed the minimum hourly wage. Employers are required to make up the difference if the employee’s total earnings fall short of the minimum wage.
In addition to the minimum wage increases, overtime work for non-salaried employees in New Jersey must be paid at 150%, although weekends and holidays are exempt from overtime pay requirements.
New Jersey, known as the “Garden State,” has a population of 8,639 people and its most populated city is Newark. The state is divided into 21 counties and was founded on December 18, 1787. It covers an area of 22,588 km².
Minimum wage increases are not exclusive to New Jersey. Several other states, including California, Illinois, Florida, and New York, will also see their minimum wages increase in 2024. The specific amounts vary by state.
A study conducted in the United States determined that a single person needs to earn an average of $68,499 per year to live comfortably. This amount is 20% higher than the required salary in 2022, which was $57,013. In California, although the state has a minimum hourly wage of $15, some cities have set higher wages, ranging from $16 to $19 per hour.
Employees who do not receive the legal minimum wage have the right to file a civil action against their employers to recover back wages, as well as damages and attorney’s fees, after notifying the employer and giving them 15 days to resolve the issue.
Overall, the increasing minimum wages in New Jersey and other states aim to improve the living conditions of workers and provide them with fair compensation for their labor.