Bill Text: NJ S3299 | 2018-2019 | Regular Session | Introduced


Bill Title: Raises minimum wage to $10.10 per hour; indexes minimum wage to increases in consumer price index.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-01-15 - Introduced in the Senate, Referred to Senate Labor Committee [S3299 Detail]

Download: New_Jersey-2018-S3299-Introduced.html

SENATE, No. 3299

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED JANUARY 15, 2019

 


 

Sponsored by:

Senator  VIN GOPAL

District 11 (Monmouth)

 

 

 

 

SYNOPSIS

     Raises minimum wage to $10.10 per hour; indexes minimum wage to increases in consumer price index.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act raising the minimum wage and amending P.L.1966, c.113.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    Section 5 of P.L.1966, c.113 (C.34:11-56a4) is amended to read as follows:

     5.    a.  Every employer shall pay to each of his employees for the first 40 hours of working time in any week wages at a rate of not less than [$5.05 per hour as of April 1, 1992 and, after January 1, 1999 the federal minimum hourly wage rate set by section 6(a)(1) of the federal "Fair Labor Standards Act of 1938" (29 U.S.C. s.206(a)(1)), and, as of October 1, 2005, $6.15 per hour, and as of October 1, 2006, $7.15 per hour for 40 hours of working time in any week and] $8.25 per hour as of January 1, 2014 and, on January 1 of 2015 and January 1 of each subsequent year, the minimum wage shall be increased by any increase in the consumer price index for all urban wage earners and clerical workers (CPI-W) as calculated by the federal government for the 12 months prior to the September 30 preceding that January 1, except that, any of the following increases over a preceding year shall apply when that increase exceeds the applicable increase in the CPI-W over the preceding year: on January 1, 2019, the minimum wage shall be $10.10 per hour; and on January 1 of each year from 2020 to 2021, inclusive, the minimum wage shall be increased by whichever increase is the greater of $1.25 per hour or $1.00 per hour plus any increase in the CPI-W.  If the federal minimum hourly wage rate set by section 6 of the federal "Fair Labor Standards Act of 1938" (29 U.S.C. s.206), or a successor federal law, is raised to a level higher than the State minimum wage rate set by this section, then the State minimum wage rate shall be increased to the level of the federal minimum wage rate and subsequent increases based on increases in the CPI-W pursuant to this section shall be applied to the higher minimum wage rate.  The employer shall pay to each of his employees 1 1/2 times such employee's regular hourly wage for each hour of working time in excess of 40 hours in any week, except this overtime rate shall not include any individual employed in a bona fide executive, administrative, or professional capacity or, if an applicable wage order has been issued by the commissioner under section 17 (C.34:11-56a16) of this act, not less than the wages prescribed in said order.  The wage rates fixed in this section shall not be applicable to part-time employees primarily engaged in the care and tending of children in the home of the employer, to persons under the age of 18 not possessing a special vocational school graduate permit issued pursuant to section 15 of P.L.1940, c.153 (C.34:2-21.15), or to persons employed as salesmen of motor vehicles, or to persons employed as outside salesmen as such terms shall be defined and delimited in regulations adopted by the commissioner, or to persons employed in a volunteer capacity and receiving only incidental benefits at a county or other agricultural fair by a nonprofit or religious corporation or a nonprofit or religious association which conducts or participates in that fair.

     The provisions of this section for the payment to an employee of not less than 1 1/2 times such employee's regular hourly rate for each hour of working time in excess of 40 hours in any week shall not apply to employees engaged to labor on a farm or employed in a hotel or to an employee of a common carrier of passengers by motor bus or to a limousine driver who is an employee of an employer engaged in the business of operating limousines or to employees engaged in labor relative to the raising or care of livestock.

     Employees engaged on a piece-rate or regular hourly rate basis to labor on a farm shall be paid for each day worked not less than the minimum hourly wage rate multiplied by the total number of hours worked.

     Full-time students may be employed by the college or university at which they are enrolled at not less than 85% of the effective minimum wage rate.

     Notwithstanding the provisions of this section to the contrary, every trucking industry employer shall pay to all drivers, helpers, loaders and mechanics for whom the Secretary of Transportation may prescribe maximum hours of work for the safe operation of vehicles, pursuant to section 31502(b) of the federal Motor Carrier Act, 49 U.S.C. s.31502(b), an overtime rate not less than 1 1/2 times the minimum wage required pursuant to this section and N.J.A.C. 12:56-3.1.  Employees engaged in the trucking industry shall be paid no less than the minimum wage rate as provided in this section and N.J.A.C. 12:56-3.1. As used in this section, "trucking industry employer" means any business or establishment primarily operating for the purpose of conveying property from one place to another by road or highway, including the storage and warehousing of goods and property. Such an employer shall also be subject to the jurisdiction of the Secretary of Transportation pursuant to the federal Motor Carrier Act, 49 U.S.C. s.31501 et seq., whose employees are exempt under section 213(b)(1) of the federal "Fair Labor Standards Act of 1938," 29 U.S.C. s.213(b)(1), which provides an exemption to employees regulated by section 207 of the federal "Fair Labor Standards Act of 1938," 29 U.S.C. s.207, and the Interstate Commerce Act, 49 U.S.C. s.501 et al.

     The provisions of this section shall not be construed as prohibiting any political subdivision of the State from adopting an ordinance, resolution, regulation or rule, or entering into any agreement, establishing any standard for vendors, contractors and subcontractors of the subdivision regarding wage rates or overtime compensation which is higher than the standards provided for in this section, and no provision of any other State or federal law establishing a minimum standard regarding wages or other terms and conditions of employment shall be construed as preventing a political subdivision of the State from adopting an ordinance, resolution, regulation or rule, or entering into any agreement, establishing a standard for vendors, contractors and subcontractors of the subdivision which is higher than the State or federal law or which otherwise provides greater protections or rights to employees of the vendors, contractors and subcontractors of the subdivision, unless the State or federal law expressly prohibits the subdivision from adopting the ordinance, resolution, regulation or rule, or entering into the agreement.

     b.    Notwithstanding the provisions of subsection a. of this section to the contrary, an employer may pay to each of his employees for the first 40 hours of working time in any week wages at a rate of less than the maximum rate established by the provisions of subsection a. of this section, but not less than $9.25 per hour, plus any increase in the CPI-W, provided that:

     (1)   The employer operates in the agriculture, forestry, fishing and hunting sector as defined by the North American Industry Classification System;

     (2)   The employer customarily operates only during a regularly recurring period of less than 28 weeks of work in a calendar year, but does not engage in construction;

     (3)   The employer employs fewer than 25 employees in the State and has been in business less than three years;

     (4)   The employees are under the age of 18;

     (5)   The employees are enrolled in an established employer on-the-job or other training program which meets standards set by regulations adopted by the commissioner; or

     (6)   The employer is a small employer as defined in section 1 of P.L.1992, c.162 (C.17B:27A-17) and offers a health benefits plan to his employees.

     c.     Notwithstanding the provisions of subsection a. of this section, a political subdivision of the State shall not adopt any ordinance, resolution, regulation, or rule requiring an employer to pay to employees for the first 40 hours of working time in any week wages at a rate of greater than the maximum rate established by the provisions of subsection a. of this section.  The provisions of this section shall preempt any ordinance, resolution, regulation, or rule adopted by a political subdivision of the State requiring an employer pay to employees for the first 40 hours of working time in any week wages at a rate greater than the maximum rate established by the provisions of subsection a. of this section.

     d.    Commencing on January 1, 2022, with respect to an employee who customarily and regularly receives gratuities or tips, every employer is entitled to a credit for the gratuities or tips received by the employee against the hourly wage rate that would otherwise be paid to the employee pursuant to subsection a. of this section of no less than $2.93 per hour.

(cf: P.L.2005, c.70, s.1)

 

     2.    (New section)  a.  The Department of the Treasury is directed to undertake a series of five annual studies following the initial implementation of the increased minimum wage rate to assess the overall economic impact of the current wage rate on the State, including but not limited to, the impact on workers, businesses, and the political subdivisions of the State.

     b.    In conducting its studies, the department shall utilize surveys of a diverse selection of businesses for feedback and consider any federal or State laws and other external factors that may augment or diminish the impact of the increased wage rate on the State's economy. 

     c.     The Treasurer shall, by January 1, 2020, and each year thereafter for the following four years, report the findings and conclusions of the study, to the Governor and the Legislature in accordance with section 2 of P.L.1991, c.164 (C.52:14-19.1).  Each report shall include, but need not be limited to, a summary of the study performed by the department and recommendations for modifying the wage rate, if appropriate, based on the study's findings.

 

     3.    This act shall take effect immediately. 

 

 

STATEMENT

 

     This bill raises the minimum wage in the State of New Jersey to $10.10 per hour and indexes that minimum wage to increases in the consumer price index.

     Specifically, the bill provides that, beginning on January 1, 2019, employers must pay their employees $10.10 per hour for 40 hours of working time in any week and 1 1/2 times the employee's regular hourly wage for each hour of working time in excess of 40 hours in any week, with certain exceptions.  The bill also provides that, on the January 1 next following the date on which the minimum wage rate is set at $10.10 per hour, and on the January 1 of the year thereafter, the State minimum wage rate will be increased, by whichever increase is the greater of $1.25 per hour or $1.00 per hour plus any increase in the CPI-W.

     Under the bill, exceptions to workers who would receive the increase in minimum wage are: (1) workers in the agriculture, forestry, fishing and hunting sector as defined by the North American Industry Classification System; (2) workers of businesses that customarily operate only during a regularly recurring period of less than 28 weeks of work in a calendar year, not including construction; (3) workers of businesses that employ fewer than 25 employees in the State and have been in business less than three years; (4) workers who are under the age of 18; (5) workers are enrolled in an established employer on-the-job or other training program which meets standards set by the commissioner; and (6) the employer is a small employer and offers a health benefits plan to his employees.

     The bill also prohibits and preempts political subdivisions of the State from requiring employers to pay their employees a rate greater than the maximum rate established by the bill.

     Additionally, commencing on January 1, 2022, for tipped employees, the bill provides that every employer is entitled to a credit for the gratuities or tips received by the employee against the hourly wage rate that would otherwise be paid to the employee of no less than $2.93 per hour.

     Finally, the bill requires the Treasurer to undertake a series of five annual studies following the initial implementation of the increased minimum wage to assess the overall economic impact of the current wage rate on the State, including but not limited to, the impact on workers, businesses, and the political subdivisions of the State.  The Treasurer is required to report the findings and conclusions of the study to the Governor and the Legislature, and is required to provide a summary of the study performed by the department and recommendations, based on the study's findings, for modifying the wage rate, if appropriate.

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