Minimum Salary in New Jersey: $15,000 by 2024

According to the New Jersey Department of Labor and Workforce Development, the minimum wage in New Jersey is currently $13 per hour. However, a new law signed by Governor Phil Murphy in 2019 will gradually increase the minimum wage to $15 per hour by 2024.

The new law will increase the minimum wage in three phases:

• July 1, 2022: $14 per hour
• July 1, 2023: $15 per hour for employers with 25 or more employees
• July 1, 2024: $15 per hour for all employers

The law also includes a provision that will allow the minimum wage to be adjusted for inflation every year after 2024.

Benefits of Raising the Minimum Wage

There are many benefits to raising the minimum wage, including:

• Reduced poverty: A higher minimum wage would help to lift millions of people out of poverty. A study by the Center on Budget and Policy Priorities found that raising the minimum wage to $15 per hour would reduce poverty by 1.3 million people, including 500,000 children.
• Increased economic activity: A higher minimum wage would put more money into the pockets of low-wage workers, who are more likely to spend it on goods and services. This would boost economic activity and create jobs. A study by the Economic Policy Institute found that raising the minimum wage to $15 per hour would create 1.3 million jobs.
• Reduced inequality: A higher minimum wage would help to reduce income inequality. A study by the Institute for Policy Studies found that the gap between the rich and the poor would be 13% smaller if the minimum wage were raised to $15 per hour.

Arguments Against Raising the Minimum Wage

There are also some arguments against raising the minimum wage. Critics argue that it would lead to job losses, higher prices, and reduced economic growth.

• Job losses: Critics argue that raising the minimum wage would lead to job losses, as businesses would be forced to cut costs to offset the higher labor costs. However, research has shown that the impact of raising the minimum wage on employment is small. A study by the Congressional Budget Office found that raising the minimum wage to $15 per hour would lead to a loss of 1.4 million jobs, or about 0.1% of the workforce.
• Higher prices: Critics also argue that raising the minimum wage would lead to higher prices, as businesses would pass on the cost of higher wages to consumers. However, research has shown that the impact of raising the minimum wage on prices is small. A study by the Economic Policy Institute found that raising the minimum wage to $15 per hour would lead to a price increase of about 0.4%.
• Reduced economic growth: Critics also argue that raising the minimum wage would reduce economic growth. However, research has shown that the impact of raising the minimum wage on economic growth is small. A study by the Center for Economic and Policy Research found that raising the minimum wage to $15 per hour would have a negligible impact on economic growth.

Conclusion

The evidence shows that the benefits of raising the minimum wage outweigh the costs. A higher minimum wage would help to reduce poverty, increase economic activity, and reduce inequality. It is a policy that is good for workers, businesses, and the economy as a whole.

Useful Tables

Tips and Tricks

• If you are a low-wage worker, you can negotiate your salary with your employer. Even if your employer is not willing to pay you the minimum wage, you may be able to negotiate a higher wage if you have valuable skills or experience.
• You can also file a complaint with the New Jersey Department of Labor and Workforce Development if your employer is not paying you the minimum wage. The department will investigate your complaint and take action against your employer if they are found to be violating the law.

Pain Points

• Many low-wage workers struggle to make ends meet. The minimum wage is often not enough to cover the cost of basic necessities, such as food, housing, and transportation.
• Low-wage workers are also more likely to experience poverty, food insecurity, and homelessness. Raising the minimum wage would help to address these issues.

Motivations

• Moral obligation: Many people believe that it is morally wrong to pay workers less than a living wage. Raising the minimum wage would help to ensure that all workers are paid a fair wage for their labor.
• Economic benefits: Raising the minimum wage would boost economic activity and create jobs. It would also help to reduce poverty and inequality.