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New Jersey Voters Approve Minimum Wage Increase

November 6, 2013

By Michael J. Wietrzychowski

By a 61 to 39 percent margin, New Jersey voters approved an amendment to the state’s Constitution that will raise the state’s minimum wage to $8.25 per hour beginning January 1, 2014.  In addition to this increase, the amendment requires annual cost of living increases to the minimum wage based on the Consumer Price Index.  Furthermore, if subsequent state or federal legislation raises the minimum wage above the constitutionally mandated rate, then the higher rate will set the new minimum wage floor, and cost of living increases will be tacked on to the higher wage.

New Jersey employers who currently pay less than $8.25 per hour should begin planning for the new rate as well as the annual increases.  Employers who currently pay employees above $8.25 per hour may feel recruitment or retention pressure to increase wages of current or prospective employees to keep those employees distanced from the minimum wage floor.

For more information regarding this or other labor and employment issues, please contact Michael J. Wietrzychowski, Co- Chair of Schnader’s Labor and Employment Practices Group. 
 
The materials posted on Schnader.com and SchnaderWorks.com are prepared for informational purposes only and should not be considered as providing legal advice or creating an attorney-client relationship. Please see our disclaimer page for a full explanation.

 

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