Joining California and New York, New Jersey has become the third state with a phased-in $15 minimum wage requirement for most employees. On February 4, 2019, Governor Phil Murphy signed into law A15 (“Law”), which raises the state minimum wage rate for employers with six or more employees to $10.00 per hour on July 1, 2019, and then to $11.00 per hour on January 1, 2020. Thereafter, the minimum wage will increase annually on January 1 by $1.00 per hour until it reaches $15.00 per hour on January 1, 2024. The minimum wage hike will phase in at a slower rate for employers with five or fewer employees and for “seasonal employers” (defined below). Thus, the current minimum wage of $8.85 per hour will increase as follows:
|
Date of Increase in Minimum Wage Rate |
Minimum Wage Rate for Employers with 6 or More Employees |
Minimum Wage Rate for “Small Employers” (those with 5 or fewer employees) and Seasonal Employers |
|
July 1, 2019 |
$10.00 | $8.85 (no change) |
|
January 1, 2020 |
$11.00 | $10.30 |
|
January 1, 2021 |
$12.00 | $11.10 |
|
January 1, 2022 |
$13.00 | $11.90 |
| January 1, 2023 | $14.00 |
$12.70 |
| January 1, 2024 | $15.00 |
$13.50 |
| January 1, 2025 | $15.00 + inflation adjusted* |
$14.30 |
| January 1, 2026 | $15.00 + inflation adjusted* |
$15.00** |
*As a result of a state constitutional amendment passed in 2013, the minimum wage rate after 2024 will increase for this group based on the inflation rate at the time (and the federal minimum wage rate, if higher).
** The Law provides for further annual inflation adjustments to the minimum wage after 2026 for seasonal workers and employees of small employers so that by January 1, 2028, workers in those groups will receive the same minimum wage as employees of larger employers. ...
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