New Jersey

New Jersey Minimum Wage Climbs to $12 an Hour

Not all workers will be earning the new $12 minimum wage, though

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The federal minimum wage is just $7.25 per hour. And President Trump and Joe Biden agree on one thing — that’s not a lot of money to live on. But they don’t agree on what to do about it. You think you know which side you support? It’s more complicated than you think.

Most minimum wage workers in New Jersey will start earning $12 an hour beginning Friday.

The latest minimum wage hike is part of the state’s plan to gradually reach a $15 minimum wage for most industries through yearly $1 increases from now until 2024.

State Assembly Speaker Craig Coughlin, D-Middlesex, who sponsored the law, championed the latest hike.

“Too many workers aren’t earning enough to make ends meet especially during the current public health crisis caused by the COVID-19 pandemic,” he said in a statement. “Continuing to gradually raise the minimum wage provides help for New Jersey residents and future generations and aids in alleviating poverty across our great state.”

Not all workers will be earning the new $12 minimum wage, though.

Seasonal workers and those in businesses with fewer than six employees will now earn an hourly wage of $11.10. Agricultural workers, meanwhile, are now entitled to $10.44 an hour.

For tipped workers like waiters, their total earnings – hourly wage plus tips – must still equal at least $15 an hour. The state suggests a $4.13 hourly wage for these workers, with the rest expected to be made up in tips.

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