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New Jersey’s Minimum Wage Set to Increase by 25 Cents

The new minimum wage of $8.85 remains insufficient for workers, businesses, and the economy.

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Published on Oct 19, 2018 in Economic Justice

New Jersey’s minimum wage will increase on January 1, 2019 from $8.60 from $8.85, according to an announcement by the NJ Department of Labor and Workforce Development. While this is a welcomed change, representing a possible increase of $520 in annual earnings for full-time workers making minimum wage, the bump isn’t nearly enough to help New Jersey’s low-wage workforce better afford their needs and provide for their families.

When New Jersey increased the minimum wage in 2013 to $8.25, it tied future increases to inflation, indexing the wage floor to the  Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). This has resulted in minor raises in most years since: 13 cents in 2015, 0 cents in 2016, 6 cents in 2017, and 16 cents in 2018. The increase of 25 cents in January 2019 will be the largest since 2013.

It’s important to remember that both houses of the state legislature passed a $15 minimum wage bill in 2016 that  included all workers. Unfortunately, the bill was vetoed by then-Governor Christie. Had it been signed into law in 2016, the minimum wage would be increasing to $12.50 on January 1, 2019 – which equates to $26,000 annually for a full-time worker.

A minimum wage of $8.85 – $18,408 a year – is woefully insufficient for someone working full-time who never gets sick and doesn’t take any vacation time. This isn’t enough for workers to make ends meet and contributes to the sluggish nature of New Jersey’s economy. When so few workers are able to participate in the economy, businesses miss out on would-be customers.

This is why a $15 minimum wage is necessary for all workers in New Jersey, including tipped, youth, farm and seasonal workers. The change would inject $3.9 billion into the state’s economy  and help over 1 million workers better afford their needs. Today, there is no region of the state where a single worker with no children can afford basic necessities while making less than $15 per hour. The costs of transportation, food and rent are simply too high for a minimum wage worker to afford without suffering in poverty.

Author

  • Brandon McKoy, President, is the chief executive of NJPP and leads the organization's efforts in shaping policy debates to advance economic justice for the many, not a chosen few. Prior to being named President of NJPP in February 2019, Brandon served as NJPP's Director of Government and Public Affairs, where he designed and implemented the organization's outreach, advocacy, and government relations activities. He also produces timely, credible and accessible research and analysis on issues including, but not limited to, economic security, the social safety net and economic opportunity.

    Brandon’s research interests include: state tax policy, the minimum wage, paid sick leave, the earned income tax credit, urban planning and criminal justice.

    Before joining NJPP in August 2014 as a national fellow under the State Priorities Partnership’s and Center on Budget and Policy Priorities’ state policy fellowship program, Brandon worked as a Program Associate at The Fund for New Jersey, where he assisted in grantmaking on public policy issues that particularly affect low-income and minority populations in New Jersey. He also worked as an AmeriCorps VISTA at HANDS, Inc., a community development corporation in New Jersey, where he worked to mitigate the negative impact of foreclosures and increase citizen participation in local decision-making.

    Brandon formerly served as the Deputy Chapter Director of New Leaders Council – New Jersey and is an alumnus of the 2013 fellows class. He currently serves on the board of the New Jersey Work Environment Council, Shelterforce and the I Am Trenton Community Foundation. He received a MA in City & Regional Planning and Policy Development from Rutgers University’s Edward J. Bloustein School of Planning and Public Policy and holds a BS degree in Social Psychology from The College of New Jersey.

    Email: mckoy (at) njpp.org | Phone: 609-393-1145 ext. 14


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