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(TRENTON) – The bi-partisan- and administration –supported measure setting gradual minimum wage thresholds to reach $15 in five years cleared the legislative appropriations panels in the Assembly and Senate Monday. The measure is poised for a floor vote in the Assembly on Jan. 31.
The bill (A-15) establishes an oversight panel and takes into account concerns of New Jersey businesses.
Assembly Speaker Craig Coughlin, and members Cleopatra Tucker, Britnee Timberlake, Gabriela Mosquera, Angela McKnight and Joseph Egan are the sponsors of the bill in the Assembly and Senators Sweeney, Diegnan, and Ruiz are the Senate sponsors.
“New Jerseyans deserve a livable wage. I thank my Assembly colleagues for joining me in moving our state forward against inequality and boosting low wages for hard-working men and women. Raising the minimum wage makes New Jersey more affordable and improves the quality of life for over a million residents,” said Speaker Coughlin (D-Middlesex). “This is not only good for workers, but for businesses and our economy. I look forward to joining my colleagues on the Assembly floor to vote to raise the minimum wage and lift working families out of poverty.”
“Family leave insurance can be a lifeline for working families and their loved ones,” said Senator Sweeney (D-Gloucester/Salem/Cumberland), who authored the law creating the leave program in 2009. “For parents of newborns or adopted children, or those who need time to care for a seriously ill family member, paid leave offers them the ability to balance the obligations of work and family without jeopardizing their economic security.”
New Jersey, which is currently one of only five states and Washington, D.C. with paid leave in effect, would provide some of the lengthiest leave time and most generous benefits in the country with the new bill.
“Expanding the provisions of paid leave will allow more people to make use of it and will give them more time with newborn children or to care for loved ones who are experiencing serious medical problems,” said Senator Diegnan (D-Middlesex). “Working families should not be forced to choose between a paycheck and the critical needs of their families. This is a compassionate program with practical benefits that will be expanded and improved.”
The number of weeks of benefits would be doubled from six to 12 in any one-year time period. The length of intermittent leave would also be increased from 42 to 56 days. And the weekly benefits for all temporary disability claims, including family leave, would increase from two-thirds of a worker’s average weekly wage to 85 percent of pay, capped at 70 percent of the average weekly wage for all workers in New Jersey, up from the current 53 percent cap. The average benefit an individual received for family leave in 2017 was $540 a week. It would increase to $689 under the new legislation. The maximum benefit an individual could receive for either Family Leave Insurance (FLI) or Temporary Disability Insurance(TDI)would increase from $638 to $842.
“Paid leave will allow workers to take the time they need for important family matters without losing the income necessary to support themselves and their families,” said Senator Ruiz (D-Essex). “Employees shouldn’t have to worry about taking care of their families and endangering their financial safety.”
A study by the United Way ALICE (Asset Limited, Income Constrained, Employed) project found that through 2016, out of New Jersey’s over 3 million households, 10.5 percent earn below the Federal Poverty Level (334,182 households) and 28 (895,879 households) percent qualify as ALICE households. The total number of New Jersey households that cannot afford basic needs increased 15 percent between 2010 and 2016.
“If a New Jersey resident making the current minimum wage works 40 hours every week of the year, their income would equal $18,408,” said Tucker (D-Essex). “This amount makes it tremendously difficult to support yourself and a family in New Jersey.”
The cost of basic household expenses—which United Way calls the “Household Survival Budget”—in New Jersey increased steadily to $74,748 for a family of four and $26,640 for a single adult. The cost of a family budget saw an increase of 28 percent from 2010 to 2016.
“Low-wage jobs continue to dominate the landscape in New Jersey, with 51 percent of all jobs paying less than $20 per hour,” said Timberlake (D-Essex). “Although unemployment rates have fallen during recent years, wages have remained low for many occupations. More people are working now yet many are barely earning enough to make ends meet.”
“Raising New Jersey’s minimum wage to $15 an hour is key to reducing overall poverty and giving working people the ability to make enough money to provide for their families,” said Mosquera (D-Camden, Gloucester). “We realize that New Jersey is still slowly emerging from the Great Recession. This is the boost working families sorely need. In a time where wages remain stagnate, providing economic security is important to our residents.”
“With more contract work and on-demand jobs, job stability has decreased. This makes it difficult for some lower-income workers to meet regular monthly expenses or even to save money,” said McKnight (D-Hudson). “Raising the minimum wage is long overdue in New Jersey. This will provide working class residents another opportunity to climb up the economic ladder.”
“Individuals and families are struggling and it’s time New Jersey raises its base minimum wage to help them,” said Egan (D-Middlesex Somerset). “This bill addresses the concern of New Jersey’s business community and does what is right by the working people of New Jersey.”
Speaker Craig Coughlin will join Governor Phil Murphy and Senate President Steve Sweeney at Ocean Bay Diner in Sayreville at 9:30 a.m. on Tuesday.
The concerted, ongoing effort by the Legislature and the administration to gradually and fairly raise the minimum wage aims to provide access and opportunity for residents currently earning an income far below the cost of living in the state.
“It’s time to even the playing field for residents working multiple jobs and struggling to pay their bills and provide for their families,” said Speaker Craig Coughlin (D-Middlesex). “Earning a more livable wage is critical to solving the more pervasive concerns of poverty and hunger around our state. Continuing our discussion in places where raising the minimum wage would make a real difference is important to ensuring New Jersey stays on the right economic track.”
The Assembly plans to vote on the minimum wage legislation Thursday, January 31.
The bill gradually and fairly raises the minimum wage to $15.00 per hour, providing further increases in the minimum wage beyond what is required by the state constitution:
- Minimum Wage from the current $8.85 to $15 per hour for the majority of workers over a 5-year period beginning July 2019.
- Addresses New Jersey business concerns by establishing a moderate time table for a select group of workers over a period of 7 years beginning January 2020. The select group includes workers of very small businesses (less than 6 employees), farm workers, and seasonal workers.
- Increases the state’s tipped minimum wage from $2.13 to $5.13 over a period of 5 years beginning January 2019. It has been two and half decades since the last tipped wage increase.
- Establishes the “Task Force on Wages and State Benefits” to annually report about the impact of the minimum wage on eligibility for state services and benefits and the impact working families.
- Establishes a Training Wage As of, January 1, 2020, the bill would establish a training wage of not less than 90% of the minimum wage for the first 120 hours to be paid to an employee enrolled in a qualified training program.
- Does not interrupt minimum wage increases provided by the Constitution based on CPI-W increases will continue to be applied in all cases in any year in which the increase set by the bill are less than the CPI-W increase, including all years after 2024. It also provides, as a constitutional provision, that if the federal minimum wage exceeds the state minimum wage it will be adopted as the new minimum for the state subject to CPI increases.