Murphy Open-Minded on More ‘Fair’ Minimum Wage Solutions

By Jim Pytell, Managing Editor On Jan 3, 2024

At a roundtable discussion today in Newark, Gov. Phil Murphy said that he is open-minded in considering what else his administration can do in providing workers a fair minimum wage, “particularly given where inflation may be headed.”

“While I am not rooting for inflation, you could envision a minimum wage by the time [my administration] hangs up its cleats, that is almost double what it was in 2017,” the governor said.

New Jersey’s minimum wage now stands at $15.13, after a law signed by Murphy to raise it took effect on Jan. 1 this week. The increase affects about 350,000 of New Jersey’s roughly 1.9 million hourly workers.

“When we first began our work together in January 2018, New Jersey’s minimum wage was only $8.60 per hour. Thanks to the bill signed into law in February 2019, we are one of only a handful of U.S. states with a minimum wage over $15 an hour,” Murphy said, adding that the minimum wage figure is also indexed annually to inflation.

Under the current law, some employers are allotted more time to reach the $15/hour minimum wage. For example, seasonal employers and businesses with six or fewer employees have until 2026 to pay their workers at least $15/hour. The minimum hourly wage for these employees increased to $13.73/hour on Jan. 1, up from $12.93/hour.

Agricultural workers are guided by a separate minimum wage timetable and are given until 2027 to reach the $15/hour minimum wage. Employees who work on a farm for an hourly or piece-rate wage saw their minimum hourly wage increase by 80 cents to $12.81/hour on Jan.1, up from $12.01/hour. Additionally, long-term care facility direct care staff saw their minimum wage rise by $1, to $18.13/hour on Jan. 1.

Tipped workers’ cash wages remains at $5.26/hour, with employers able to claim a $9.87 tip credit, an increase of $1. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, the employer must pay the employee the difference.

“We have always said businesses will pay what they can afford,” said Michele Siekerka, president and CEO of the New Jersey Business & Industry Association. “According to our 2024 Business Outlook Survey, 34% of businesses increased pay for employees by 5% or more. Three years ago, during the height of the pandemic, that number was only 12%. And despite uncertain economic outlooks nationally and in New Jersey, businesses expect that upward trend to continue in 2024, with 21% saying they’ll increase wages more than 5%.  

“However,” Siekerka continued, “we also saw less in the way of profits in 2023. Only 32% of respondents reported profits for the year. At the same time, 44% reported a loss. And in recent years, we have still seen a ton of small businesses shutter because, as we emphasize more than ever, every dollar counts. That’s not a tagline. That’s the truth.

“We respect businesses, and we need to have businesses because that is where the jobs are,” said Speaker Craig Coughlin. “[But we] are all better off when we have family leave, when the minimum wage is higher, and when people have paid sick leave – because our economy is best when people are out spending money.”  

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