In April, New Jersey's acting Governor Richard Codey signed a new state minimum wage into law. This new law will bring the minimum wage to $7.15 per hour by October 2006. New Jersey's minimum wage has been the same as the federal minimum wage, $5.15 per hour, since 1999. The new law will raise New Jersey's wage higher than the federal amount by $2.00.

When will the new minimum wage go into effect?

This will happen in two steps over the next two years. The first increase was on October 1, 2005, when it went up to $6.15 per hour. The next will be on October 1, 2006, when it will increase to $7.15 per hour.

Will the minimum wage in New Jersey be increased again?

The new law says that New Jersey has to review the minimum wage on a regular basis to see if it needs to be increased again. The state is going to do this through a newly created commission, called the New Jersey Minimum Wage Advisory Commission. This commission is supposed to evaluate the state minimum wage every year, to make sure that the new wage keeps pace with the cost of living. They will also evaluate the "purchasing power" of the minimum wage, as well as any change in value of the state minimum wage relative to the federal poverty guidelines. That means that if the federal government changes its definition of "poor," that change should be reflected in the New Jersey minimum wage. When people in this nation and/or in this state need more money to be able to provide food, clothing, medicine, and other basic needs for themselves and their families, the commission should tell New Jersey to increase the minimum wage again.

Who is on the New Jersey Minimum Wage Commission and when will they report their findings?

The Commissioner of Labor and Work Force Development and four representatives appointed by the governor make up the commission. Every year, they will assess New Jersey's cost of living, which includes changes in the cost of housing, health care, child care, transportation, and food. Annual reports about these issues are going to be given to the governor and the state legislature by the commission. The first report is to be submitted at some time between October 1 and December 31, 2007.

Does this mean that everyone in New Jersey has to get paid at least $7.15 an hour? Does this affect overtime wages?

The new state wage applies to anyone working in New Jersey, with some exceptions. The law says that anyone working over 40 hours per week should get at least one and a half times the minimum wage for each hour worked over the 40 hours. However, under this law employers are not required to pay the new wage or overtime to workers in some jobs. These include part-time workers in home child care, certain salesmen, volunteers, farm workers, hotel employees, and bus and limousine drivers. Full-time students working at the college or university in which they are enrolled still are only guaranteed 85% of the state minimum wage, which has been $4.38 per hour and in two years will be $6.08 per hour.

Can local governments, such as towns and municipalities, require a higher minimum wage?

The new minimum wage law allows towns and local areas to set their own minimum wage at any level, as long as it is either the same as or higher than the state minimum. If the locality raises the minimum wage higher than the state's minimum next year (that is, higher than $6.15 per hour), they still must raise their wage to at least $7.15 per hour the following year.

This article appeared in the October 2005 edition of Looking Out for Your Legal Rights^®.