8 I Winter 2019 www.anjc.info Legislative Update TECHNIQUE Council OUR HEALTH Governor Murphy has publicly asked the Legislature to put a bill on his desk to increase the statewide minimum wage from $8.60 ($8.85 on January 1st) to $15 an hour, a move which would make good on one of his key campaign promises. In response to the governor’s request, Speaker Coughlin introduced Assembly Bill 15, which amends and supplements the “New Jersey State Wage and Hour Law” and raises, over time, hourly minimum wage to $15.00 by 2024. It is important to note that minimum wage increases based on CPI-W will still be in effect if the provided steps are less than the CPI-W (Consumer Price Index for Urban Wage Earners and Clerical Workers) mandated increase. The legislation does provide an extended phase-in period for small employers (less than 10), employees under the age of 18, farm laborers, and seasonal employees. Tipped workers such as bartenders and restaurant servers will also be guaranteed $15 per hour by 2024, although the legislation maintains the current system that mixes both tips and salary. Currently, tipped workers earn at minimum a $2.13 per hour wage but their employer must make up the difference between what they receive in pay and tips if it falls below minimum wage. Also, beginning in 2020, a training wage of not less than 90 percent of the minimum wage may be implemented for an employee enrolled in a qualified training program, only during the first 80 hours of employment. Regular Phase-In: • $9.50 on July 1, 2019 • $11.00 on January 1, 2020 • $12.15 on January 1, 2021 • $13.30 on January 1, 2022 • $14.45 on January 1, 2023 • $15.00 on January 1, 2024 Extended Phase-In (small employers, employees under 18, farm laborers, and seasonal employees): • $10.10 on January 1, 2020 • $10.35 on January 1, 2022 • $10.70 on January 1, 2023 • $11.10 on January 1, 2024 • $11.70 on January 1, 2025 • $12.45 on January 1, 2026 • $13.20 on January 1, 2027 • $14.10 on January 1, 2028 • $15.00 on January 1, 2029 With respect to tipped workers, every employer who employs a worker who customarily and regularly receives gratuities or tips will be entitled to a credit for the tips received by the worker against the hourly minimum wage rate paid to the worker in the following amounts: •  $6.72 after December 31, 2018 and before July 1, 2019 •  $7.37 after June 30, 2019 and before January 1, 2020 •  $7.87 during calendar year 2020 •  $7.42 during calendar year 2021 •  $7.57 during calendar year 2022 •  $8.72 during calendar year 2023 •  $9.87 during calendar year 2024 and subsequent calendar year Governor Murphy says that he is committed to raising the state’s minimum wage to $15 per hour, but he is concerned about the legislation because it takes several years to raise the limit and would be more supportive if it took three to four years to achieve the $15 per hour wage. The governor also opposes an extended phase-in for certain workers; he feels that it should be the same across the board for all workers. Senate President Sweeney calls the current legislation a “working docu- ment” and a great starting point for discussions. The Legislature hopes to get a bill passed and on the governor’s desk by the end of January. Jon Bombardieri and his firm, CLB Partners, serve as the Government Affairs Counsel to the ANJC. By Jon Bombardieri ANJC Government Affairs Counsel Governor Murphy and Legislature Look Towards Increasing Minimum Wage