The NJ minimum wage agreement will certainly help those earning less than $15 and hour, but the impact on New Jersey businesses will be significant. As the NJBIA points out, New Jersey businesses already face a myriad of challenges and a mandatory minimum wage increase may have unintended consequences. Only time will tell.
“The agreement by Gov. Phil Murphy and legislative leadership to raise the minimum wage to $15 an hour may be predictable, but it is far from economically responsible. Yes, the phase-in is deliberate. But there does not appear to be any consideration of the significant impacts this increase will have on small businesses and its various sectors, both now and in the future. There has been no acknowledgment of the cumulative costs our small businesses already have to absorb to run a business in New Jersey — like added mandates, expensive compliance regulations, more subsidies for energy delivery and increased taxes as a means to balance the state budget. For this, New Jersey ranks dead last for business friendliness before we even get to a $15 minimum wage.”