NJBIA Statement on July 1 Minimum Wage Increase

NJBIA President & CEO Michele Siekerka, Esq., issued the following statement on Monday as the minimum wage increased to $10 per hour, the first step toward the phase-in of a $15 minimum wage by Jan. 1, 2024. See NJBIA’s Fast Facts on the Minimum Wage law here for more information about the law’s provisions.

“Since the minimum wage increase became law, NJBIA has been monitoring the impacts of the increase in real time, gathering information on what our members are doing to adjust their business models and relaying that to our policymakers.

“Generally and not surprisingly, we’re seeing many of the same concerns we had noted while advocating for a phased-in and limited increase – that they’ll need to raise costs or cut expenses to accommodate the higher rate. Obviously, small businesses will be more impacted by this increase to $10 an hour. But we do expect that once we hit Jan. 1, 2020, when even smaller businesses with fewer than six workers are affected that these impacts will be more widely seen and felt, especially when the increase hits our tourism industry and seasonal workers, as well. (The mininimum wage for employers with five or less workers rises to $10.30 an hour on Jan. 1 and to $11 an hour for all other employers.)

“We thank our policymakers for recognizing the need to be responsive to the new law, in real time, via their consideration of new legislation to mitigate unintended consequences. Most recently, we supported the proposal (S3483) for tax credits to encourage employers to hire more workers under 18 years old – as these youth workers are at risk of not being hired because of the higher rate.”