The goal set by New Jersey Governor, Phil Murphy, to increase New Jersey’s Minimum Wage to $15 an hour is set for success in 2024. New Jersey’s Department of Labor and Workforce Development announced that the state’s minimum wage has increased to $15.13 as of January 1, 2024 for most employees.
Obligations for New Jersey Employers
Effective January 1, 2024, employees have minimum wage protection under the law, and must be paid at least $15 per hour.
When an employer violates the Fair Labor Standards Act and a worker’s minimum wage protection, the affected employee may be able to file wage and hour lawsuits against their employer.
Additionally, effective January 1, 2023, seasonal and small employers are required to pay their employees a minimum of $13.73 per hour; agricultural employers are requirement to pay at least $12.81 per hour; and long-term care facility direct care staff must be paid at least $18.13 per hour.
Exceptions to the New Minimum Wage
There are exceptions to the new minimum wage requirement for automobile salespersons, outside salespersons, tipped employees, and minors under the age of eighteen (18).
Tipped employee’s total earnings, which is their hourly wage plus tips, must equal at least the minimum wage per hour ($15). Currently, the required rate is set to $5.26 per hour. If the hourly rate plus tips does not equal at least the minimum wage per hour ($15), the employer is required to make up the difference. The minimum wage for tipped employees in New Jersey is not affected on January 1, 2024.
Where Does Pennsylvania Stand?
On June 20, 2023, House Bill No. 1500 passed in the Pennsylvania House of Representatives. House Bill No. 500 aims to amend Pennsylvania’s Minimum Wage Act to increase the minimum wage in Pennsylvania to $15.00 per hour by 2026.
For more than a decade, Pennsylvania’s minimum wage has been $7.25 per hour. Further, Pennsylvania’s tipped wage has not seen an increase since 1997, when it was set at $2.83 per hour.
On average, a Pennsylvanian who earns minimum wage will earn $15,000 per year. Due to rising costs affecting the nation, workers are unable to pay for basic necessities and are forced to rely on public assistance. These statistics promulgated House Bill No. 1500, which has seen divided support across Pennsylvania’s Legislature.
Looking Forward
While New Jersey employees will see an increase in minimum wage in 2024, it is unclear whether Pennsylvanians will experience the same. HB 1500 narrowly passed in the Pennsylvania House of Representatives, with a vote of 103-100. It is unclear whether HB 1500 will gain support in the state Senate and become law. Should HB 1500 pass in the state Senate, the minimum wage in Pennsylvania will increase to:
- $11.00 per hour effective January 1, 2024;
- $13.00 per hour effective January 1, 2025; and
- $15.00 per hour effective January 1, 2026
Whether located in Pennsylvania or New Jersey, it is important that employers review their employees’ wages to ensure that they currently comply with their state’s minimum wage requirements and that revisions to payroll can and will be made as new minimums are required.
KingSpry’s Employment Law Group is prepared to help employers of all sizes proactively and responsibly manage their employment and human resources needs. Should you have questions or concerns regarding minimum wage requirements, contact our Employment Law team today.
