New Jersey Minimum Wage Increase Effective Jan. 1

December 16, 2013Alerts Labor & Employment Alert

On January 1, 2014, the New Jersey minimum wage will increase $1 from the current $7.25 to $8.25 per hour. Thereafter, the minimum wage will increase annually proportional to the consumer price index for all urban wage earners and clerical workers.

This change affects all workers who previously earned minimum wage and those who earned less than $8.25 per hour. Accordingly, payroll coordinators should update their systems before January 1, 2014, to reflect changes in the law and ensure that no wage earners are earning less than $8.25 per hour.

Initially, the New Jersey Legislature attempted to increase the state minimum wage to $8.50 per hour, with future increases tied to the consumer price index. However, the bill was conditionally vetoed by Governor Chris Christie. Responding to the governor’s conditional veto, the Legislature proposed that a wage increase be put into effect by a constitutional amendment, approved by New Jersey voters.

On November 5, 2013, New Jersey voters approved the ballot question to raise the minimum wage to $8.25, with more than 60 percent voting in favor of the wage increase, effective January 1, 2014.

For more information about this alert or if you have any questions or concerns, please contact Jordan Kaplan at 973.994.7819 or [email protected] or any member of Fox Rothschild’s Labor & Employment Department .