NJ minimum wage to hit record high of over $15 per hour

Daniel Munoz, NorthJersey.com
Updated Wed, September 27, 2023 

New Jersey’s minimum wage is set to hit a record hit on Jan. 1, 2024: $15.13 an hour, said a press statement sent out Tuesday.

That’s thanks to a law Gov. Phil Murphy signed in 2019 to gradually increase the statewide minimum wage. It was $8.60 an hour when the Democratic governor took office in 2018.

Murphy’s predecessor, Republican Chris Christie, blocked several attempts to raise the statewide minimum wage to $15 an hour.

“As we approach this long-awaited benchmark, I am hopeful that New Jersey workers will be able to improve their quality of life and secure a better future for their families in the middle class,” Murphy said Tuesday. “Our administration will continue to prioritize our workers, who are the backbone of our economy.”

Under the 2019 measure, the state Department of Labor sets the minimum wage based on the law or inflation, whichever is higher.

Thanks to a combination of historically high inflation and the COVID-19 pandemic, the minimum wage rose $1.13 to $14.13 an hour last year.

“This is a proud moment for New Jersey as we prepare to become one of only a handful of states with a minimum wage above $15 an hour,” said Labor Commissioner Robert Asaro-Angelo.

Not all minimum wage workers will be treated equally under the state law, however.

Agricultural workers will reach $15 an hour by 2027. This January, their wages will go up from $12.01 to $12.81 an hour.

Seasonal employers and small businesses — those with up to five employees — will see their minimum wage hit $15 an hour by 2026, “to lessen the impact on their businesses,” officials said. This January, their minimum wage will increase from $12.93 to $13.73 an hour.

Long-term care facility direct care staff will see their wages increase by $1 to $18.13 an hour.

Tipped workers' cash wage will remain at $5.26 an hour, generally at restaurants. Employers will be able to claim a $9.87 tip credit. If tips plus the minimum cash wage plus tips don’t equal $15.13 an hour, the employer must pay the difference.

Once the statewide minimum wage maxes out under the 2019 law, it will continue to increase under the Consumer Price Index.

Daniel Munoz covers business, consumer affairs, labor and the economy for NorthJersey.com and The Record.

Email: munozd@northjersey.com; Twitter:@danielmunoz100

This article originally appeared on NorthJersey.com: NJ minimum wage 2023 to hit all-time high of over $15