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NJ minimum wage crosses $15 threshold

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NJ minimum wage crosses  threshold


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As 2024 rings in, it also marks the crossing of a notable threshold here in the Garden State when the minimum wage increases Jan. 1 to $15.13 per hour.

That figure, affecting some 350,000 of New Jersey’s nearly 1.9 million hourly workers, surpasses the $15 per hour goal set into law in 2019 and makes the state one of just a handful to reach that mark.

“Raising the minimum wage has been a top priority of mine since day one,” said Gov. Phil Murphy. “There is no doubt that inflation has had an impact on every New Jerseyan. Now that we are close to surpassing the $15 per hour milestone, it’s important that we continue to ensure that everyone working in New Jersey has access to a livable wage.”

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Industry specifics:

  • Seasonal employers and businesses with six or fewer employees have until 2026 to pay workers at least $15 per hour – these employees’ minimum wage increases to $13.73 per hour on Jan. 1.
  • Agricultural workers are guided by a separate timetable and were given until 2027 to reach the mark – they will see their hourly wages increase by 80 cents, to $12.81 per hour.
  • Long-term care facility direct care staff will see their minimum wage increase by $1 to $18.13 per hour.
  • Tipped workers’ cash wage remains at $5.26 per hour with employers able to claim a $9.87 tip credit – a $1 increase. If the minimum cash wage plus an employee’s tip do not equal at least the state’s minimum wage, the employer must pay the employee the difference.

 

The minimum wage is set by the New Jersey Department of Labor and Workforce Development (NJDOL) using either the rate specified in the law, or a calculation based on the Consumer Price Index (CPI) – whichever is higher. New Jersey’s constitution specifies that the minimum wage will continue to be adjusted annually based on CPI.

You can check out full details, along with more of the particulars on minimum wage changes on the NJDOL website here.

“Raising and aggressively enforcing the minimum wage signals to employers and workers alike that New Jersey values its workforce,” said Labor Commissioner Robert Asaro-Angelo. “While our Department’s Workforce efforts try to ensure workers receiving minimum wage are only doing so for a small part of their career, this is a proud moment for New Jersey as we become one of the few states with a minimum wage above $15 an hour that will continue to be adjusted each year for inflation.”

The NJDOL also announced changes in the maximum benefit rates and taxable wages for its Unemployment Insurance (UI), Temporary Disability Insurance (TDI), Family Leave Insurance (FLI) and Workers’ Compensation programs, which begin Jan. 1, 2024.

Business as usual

“The New Jersey business community expected the minimum wage to rise to around $15/hour on Jan. 1 so there’s no surprise with this increase. Employers had time to prepare so it’s business as usual in regard to that,” Tom Bracken, president and CEO, New Jersey Chamber of Commerce, told NJBIZ in a statement. “However, there is talk during the lame duck of expanding paid family leave which would be an additional financial burden on small businesses. This creates much unpredictability for them – and adds further financial constraints on their ability to operate.”

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Gov. Phil Murphy signs landmark legislation to raise New Jersey’s minimum wage to $15 an hour on Feb. 4.
Gov. Phil Murphy signs landmark legislation to raise New Jersey’s minimum wage to $15 an hour on Feb. 4. – EDWIN J. TORRES/GOVERNOR’S OFFICE

“We have always said businesses will pay what they can afford. According to our 2024 Business Outlook Survey, 34% of businesses increased pay for employees by 5% or more. Three years ago, during the height of the pandemic, that number was only 12%,” Michele Siekerka, president and CEO, New Jersey Business & Industry Association (NJBIA), told NJBIZ in a statement. “And despite uncertain economic outlooks nationally and in New Jersey, businesses expect that upward trend to continue in 2024, with 21% saying they’ll increase wages more than 5%.”

“However, we also saw less in the way of profits in 2023,” Siekerka continued. “Only 32% of respondents reported profits for the year. At the same time, 44% reported a loss. And in recent years, we have still seen a ton of small businesses shudder because, as we emphasize more than ever, every dollar counts. That’s not a tag line. That’s the truth.”

Regarding talk of potentially looking into raising the minimum wage further – as the governor has hinted at – Siekerka believes that the market is always the best natural determinant, as opposed to another mandate.

“The truth of the matter is that more entry-level positions exceeded the $1 increase per year over the past five years, especially given the aftermath of COVID and workplace demands,” Siekerka explained. “It also should be said that the state constitution specifies that minimum wage be determined by the CPI. We shouldn’t be dismissing that. It might be better to take a pause to analyze inflation and the free market rather than just setting a number.”

She stressed that we do not know which way the economy is going.

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“And there are still businesses that are still very much vulnerable,” said Siekerka. “Most of our employers have a keen awareness to the economy and their own bottom lines. They know what they can afford and what they can’t. Let the free market do its work.”

Most of our employers have a keen awareness to the economy and their own bottom lines. They know what they can afford and what they can’t. Let the free market do its work.
— Michele Siekerka, president and CEO, NJBIA

In a press release, Business for a Fair Minimum Wage applauded the 22 states (including New Jersey) that are ringing in the new year with a minimum wage increase. According to the national network of business organizations, owners and executives that believe an increased minimum wage makes good business sense, another three states and the District of Columbia are scheduled for increaseses later in 2024.

“Minimum wage increases are a great way to start the new year,” said Holly Sklar, CEO, Business for a Fair Minimum Wage. “They help workers put food on the table and keep a roof overhead and they boost the consumer spending that businesses depend on. Fairer wages help businesses hire and retain employees and deliver the reliable customer service that leads to repeat customers instead of lost customers. While the federal minimum wage falls further and further behind the cost of living at just $7.25 an hour, state increases are vital for workers, businesses, and communities.”





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New Jersey

The New Jersey Election That Should Terrify the Democratic Establishment

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The New Jersey Election That Should Terrify the Democratic Establishment


Welcome to this week’s mailbag. There was a genuinely stunning—and mostly overlooked—election result last week. And no, I’m not talking about the special election in Texas. Fortunately, several Message Box subscribers asked about it, so let’s dig in.

A quick reminder: these mailbags run every Saturday as a special feature for paid subscribers. Subscribe to get full access and drop your questions for future mailbags.

Don’t forget to leave your questions for next week’s mailbag in the comments section.

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What can the NJ-11 result tell us about the weakness of the Democratic establishment? It seems like progressive candidates are doing well even in purple-ish areas

I want to start by saying this plainly: the New Jersey special Democratic primary to replace Mikie Sherrill is going to send shockwaves through the Democratic establishment. This is the most consequential Democratic primary result since Alexandria Ocasio-Cortez defeated Joe Crowley in 2018.

Seriously.



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Trump ordered to restore funding for rail tunnel between New York, New Jersey

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Trump ordered to restore funding for rail tunnel between New York, New Jersey


NEW YORK — A federal judge ordered the Trump administration to restore funding to a new rail tunnel between New York and New Jersey on Friday, ruling just as construction was set to shut down on the massive infrastructure project.

The decision came months after the Trump administration announced it was halting $16 billion in support for the project, citing the then-government shutdown and what a top federal budget official said were concerns about unconstitutional spending around diversity, equity and inclusion principles.

U.S. District Judge Jeannette A. Vargas in Manhattan approved a request by New York and New Jersey for a temporary restraining order barring the administration from withholding the funds, while the states seek a preliminary injunction that would keep the money flowing while their lawsuit plays out in court.

“The Court is also persuaded that Plaintiffs would suffer irreparable harm in the absence of an injunction,” the judge wrote. “Plaintiffs have adequately shown that the public interest would be harmed by a delay in a critical infrastructure project.”

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The White House and U.S. Department of Transportation did not immediately respond to emails seeking comment Friday night.

New York Attorney General Letitia James called the ruling “a critical victory for workers and commuters in New York and New Jersey.”

“I am grateful the court acted quickly to block this senseless funding freeze, which threatened to derail a project our entire region depends on,” James said in a statement. “The Hudson Tunnel Project is one of the most important infrastructure projects in the nation, and we will keep fighting to ensure construction can continue without unnecessary federal interference.”

The panel overseeing the project, the Gateway Development Commission, had said work would stop late Friday afternoon because of the federal funding freeze, resulting in the immediate loss of about 1,000 jobs as well as thousands of additional jobs in the future.

The new tunnel is meant to ease strain on an existing, over 110-year-old tunnel that connects New York and New Jersey for Amtrak and commuter trains, where delays can lead to backups up and down the East Coast.

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New York and New Jersey sued over the funding pause this week, as did the Gateway Development Commission, moving to restore the Trump administration’s support.

The suspension was seen as way for the Trump administration to put pressure on Senate Democratic leader Chuck Schumer of New York, whom the White House was blaming for a government shutdown last year. The shutdown was resolved a few weeks later.

At a hearing in the states’ lawsuit earlier Friday in Manhattan, Shankar Duraiswamy, of the New Jersey attorney general’s office, told the judge that the states need “urgent relief” because of the harm and costs that will occur if the project is stopped.

“There is literally a massive hole in the earth in North Bergen,” he said, referring to the New Jersey city and claiming that abandoning the sites, even temporarily, “would pose a substantial safety and public health threat.”

Duraiswamy said the problem with shutting down now is that even a short stoppage would cause longer delays because workers will be laid off and go off to other jobs and it’ll be hard to quickly remobilize if funding becomes available. And, he added, “any long-term suspension of funding could torpedo the project.”

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Tara Schwartz, an assistant U.S. attorney arguing for the government, disagreed with the “parade of horribles” described by attorneys for the states.

She noted that the states had not even made clear how long the sites could be maintained by the Gateway Development Commission. So the judge asked Duraiswamy, and he said they could maintain the sites for a few weeks and possibly a few months, but that the states would continue to suffer irreparable harm because trains would continue to run late because they rely on an outdated tunnel.

____

Collins reported from Hartford, Connecticut.



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N.J. leads in arts education but there are rising challenges

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N.J. leads in arts education but there are rising challenges


From Philly and the Pa. suburbs to South Jersey and Delaware, what would you like WHYY News to cover? Let us know!

New Jersey is often held up as a national leader when it comes to arts education, holding the distinction of first state to provide universal access. State law requires public schools to teach the arts, and nearly every district reports offering at least some form of visual or performing arts instruction.

The state now claims nearly 80% participation around the state, meaning more than 985,000 of the 1.2 million students in New Jersey take arts classes. Many districts boast 100% participation, including the Camden City School District and others in South Jersey.

That was the culmination of years of advocacy, working with policymakers, parents and even students, says Wendy Liscow, executive director of Arts Ed NJ, a nonprofit coalition founded in 2007.

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“It’s a big challenge to increase arts education in our state and raise awareness, so you have to have everyone at the table,” Liscow said.

While various initiatives and standards regarding arts education in the state were implemented as early as 1996, the landmark achievement of universal access to arts education in all public schools was officially announced in September 2019.

New Jersey’s visual and performing arts standards are written into the state’s academic code, placing them on equal footing with subjects like math and English language arts. Students are required to earn five credits of arts instruction to graduate from high school, and those credits now count toward a student’s GPA.

That policy shift helped legitimize the arts in the eyes of students and parents, said Liscow, who joined Arts Ed NJ in 2022.

“In the past, arts courses didn’t always count the same way,” she said. “Now students who care about the arts can say, ‘This matters. This helps me get to college.’”

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As elsewhere, visual arts and music dominate arts education in New Jersey. More than 820,000 students are in visual arts classes, and nearly 750,000 are taking music classes. There are nearly 4,000 teachers in each discipline. Fewer than 50,000 students are enrolled in either theater or dance, subjects for which there are only a few hundred teachers each.

However, some disparities in access to creative and performing arts classes still exist, with some school districts still falling below the legal mandates. About 3.4% of students, about 42,000, lack any such opportunity. Liscow said recent budgetary challenges at the federal and state levels have forced advocates to work harder just to preserve their earlier gains.

Liscow also noted that rising costs — from tariffs and other upward pressures — have been among the bigger challenges for districts, especially less wealthy ones. Tariffs may partly explain that, she said.

“The dollars that they have are getting 30 to 40% less,” she said. “So when they’re buying something, it’s costing them 30 to 40% more. So even staying level is going to get us less in this culture and each district will decide if staying level might be a win right now.”

That’s a sentiment shared by Craig Vaughn, superintendent of Springfield Township School District in Burlington County.

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“My district has certainly taken it on the chin with the loss of state aid that’s caused some cuts in other areas,” he said. “But my board’s been supportive of making sure that we keep teachers in place that teach art and music. We’ve been really fortunate to get some grants that have grown our program and offered some things that are on more of the extracurricular basis.”

The Springfield district consists of only a single elementary school, for which Vaughn also serves as the principal. He added that they had to get “creative” in order to ensure continued access by hiring dual-certified teachers and joining a shared service agreement with a neighboring district.

“I think it’s more on the local side that we’re doing a lot to support these things than maybe the state is,” he said.

Liscow said she applauds such efforts, noting that early exposure is “critical” and that maintaining earlier gains is essential to the state’s future.

“You can’t suddenly become a dancer at 14 or 15,” she said. And “it’s very easy to cut a program, but it can take 10 years to get it back.”

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Recently, Arts Ed NJ created a Youth Arts Ed Council in which students from 21 high schools around the states themselves learn to advocate for themselves.

“They learn the power of their voice and agency,” Liscow said. “And I think it’s been a really successful project, because policymakers, administrators listen to young people more than they might listen to an adult.”



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