New Jersey to Increase Minimum Wage

New Jersey recently announced that on January 1, 2017, workers will receive a minimum wage increase of $0.06, bringing the new minimum wage to $8.44 per hour.  New Jersey annually reviews the state’s minimum wage and adjusts it based upon the Consumer Price Index (CPI) for urban wage earners and clerical workers as reported by the Bureau of Labor Statistics.  The CPI from August 2015 to August 2016 increased approximately 0.66% resulting in the $0.06 per hour increase to minimum wage.  Employers who fail to comply with the new minimum wage can be fined a minimum of $100 and as much as $1,000 and found guilty of a disorderly persons violation.

New Jersey’s minimum wage has increased a total of $0.19 since 2014 as follows:

2014               $8.25

2015               $8.38

2016               $8.38

2017               $8.44

New Jersey is just one of many cities and states implementing minimum wage increases in 2017.

Who is impacted?

The minimum wage will apply to all employees with the following exemptions:

• Full-time students employed by the college they attend will be paid at not less than 85% of the minimum wage.
• Outside sales people of motor vehicles.
• Part-time employees engaged in the care of children in the home of the employer.
• Employees at summer camps, conferences and retreats operated by religious or non-profit organizations during the months of June, July, August and September.
• Some classifications of minors under the age of 18 as stipulated in the wage and hour law.

 What must employers do?

While the minimum wage does not become effective until January 1, 2017, employers

will obviously want to look at the wages of all workers and be prepared to make adjustments, where necessary, by the effective date.  Additionally, New Jersey requires that a minimum wage notice must be displayed in the workplace where all employees frequent and are able to see.

Now is a good time for employers to ensure that they are fully compliant in their labor law posting requirements.  All employers must display specific federal and state posting requirements.  The New Jersey all-in-one labor law poster is available through The Labor Law Center and comes with a guarantee of full compliance to your posting requirements.  Plan ahead, and be prepared for the January 1^st  implementation.