The minimum wage in New Jersey is currently $8.85, and raising it to $15 would boost the incomes of more than 1 million people in the state, according to New Jersey Policy Perspective, a liberal-leaning research group. The bill proposes increasing the minimum wage to $10 an hour on July 1. On Jan. 1, it would increase to $11 an hour, and then would increase by $1 an hour every year until it reaches $15 in 2024. “No one working a full-time job should ever live in poverty,” Mr. Murphy, a Democrat, said in a statement. “Putting the minimum wage on a clear and responsible path to $15 an hour is good for workers, good for our businesses and good for our economy. A higher minimum wage strengthens all of New Jersey.” The announcement of an agreement between Mr. Murphy, Stephen M. Sweeney, the senate president, and Craig Coughlin, the speaker of the assembly, amounts to a fait accompli; both Mr. Sweeney and Mr. Coughlin had said they would not introduce a bill unless it could pass and Mr. Murphy would sign it. With Democrats in control of both houses of the legislature, passing the bill will be a formality. The agreement also marks a major political victory for Mr. Murphy, who made raising the minimum wage and legalizing marijuana central promises during his run for governor. Though he said during his campaign that he wanted to raise the minimum wage to $15 by 2021, the governor said he was willing to negotiate with legislative leaders to get it passed early this year. The bill includes some exceptions: For seasonal workers and employees at small businesses who employ five workers or less, the base minimum wage would reach $15 an hour by 2026. For farmworkers, the base minimum wage would increase to $12.50 an hour by Jan. 1, 2024. Then, a special committee would review whether to raise those workers’ minimum wage to $15 an hour.<doc-sep>New Jersey lawmakers reached an agreement Thursday to raise its minimum wage to $15 by 2024. Democratic Gov. Phil Murphy and the Democrats who lead the state Legislature disagreed over which workers should be included in the wage increase, NJ.com reports. The new plan would raise the minimum wage to $10 an hour on July 1, $11 an hour in 2020, $12 an hour in 2021, $13 in 2022, $14 in 2023 and $15 in 2024. ADVERTISEMENT Those in the state legislature called for exceptions to be made for some employers, including small businesses and farmers. “I’m sorry it took as long as it did, but I think we came up with a really good compromise,” Senate President Stephen Sweeney (D) said. “It took forever, but we got it done.” “This is a big, big step forward for New Jersey. And particularly, it’s responsible,” Murphy said during a virtual town hall. “We are changing the lives of a million workers in this state. I can’t stress that enough.” The state Senate and state Assembly still need to pass a bill that needs to signed into law by Murphy. Democrats in the national House and Senate proposed a bill Tuesday to raise the federal minimum wage to $15. The federal minimum wage of $7.25 per hour has not increased in a decade and was based on legislation passed in 2007.<doc-sep>New Jersey’s Democratic governor and legislative leaders have reached a highly anticipated agreement to raise the state’s minimum wage to $15 an hour for most workers by 2024. Under the deal, many workers would see their wages rise gradually to a $15 an hour, though some, including those employed by small businesses with five or fewer employees, will have to wait longer. The deal had been held up by a disagreement over which workers should receive $15 an hour and when. Gov. Phil Murphy called for $15 for all, while his fellow Democrats who lead the state Legislature — Senate President Stephen Sweeney and Assembly Speaker Craig Coughlin — said there must be exceptions made for some employers, including small businesses and farmers. This tension had stalled progress on one of the Democrats' top priorities. “I’m sorry it took as long as it did, but I think we came up with a really good compromise,” Sweeney, D-Gloucester, told NJ Advance Media. “It took forever, but we got it done.” The breakthrough announced Thursday is a plan to raise the standard minimum wage to $10 an hour on July 1, $11 an hour in 2020, $12 an hour in 2021, $13 in 2022, $14 in 2023 and $15 in 2024. “This is a big, big step forward for New Jersey. And particularly, it’s responsible,” Murphy said during a virtual town hall. “We are changing the lives of a million workers in this state. I can’t stress that enough.” The impact of the deal is far-reaching. New Jersey Policy Perspective, a liberal Trenton think tank, estimated more than 1 million workers will benefit from the wage hike. But about 10 percent of those employees will be put on a slower path. Seasonal workers and small business employees won’t reach $15 an hour until 2026. Farm workers will hit $12.50 in 2024, after which it would be left up to state officials in the executive branch whether to keep going to $15 an hour by 2027. A bill still must be passed by the state Senate and Assembly and signed into law by the governor. The Democrat-controlled Legislature hopes to vote on the measure by the end of the month, according to one legislative source. Murphy said he’s pleased to clear the deck and “focus on new priorities" — such as legalizing recreational marijuana in the state. “The highest priority I had for 2019 was minimum wage getting to $15,” he said. “As of today, we have that deal sealed.” Murphy has said a big increase in the minimum wage is needed begin closing a wealth gap that is 13th widest in the U.S. New Jersey has one of the highest median incomes in the country, but one in 10 residents live under the federal poverty line, which measures only extreme poverty. Advocates say $15 an hour will boost incomes closer to workers need to afford basic expenses in New Jersey. Someone working 40 hours a week at the current minimum wage, $8.85 an hour, will earn $354 a week, or $18,408 a year. At $15 an hour, that same worker will earn $600 a week and $31,200 a year. Annual adjustments for inflation will resume once workers reach $15 an hour. New Jersey employees on one of the slower paths will receive even bigger inflationary adjustments to help them catch up. But advocates for low-income workers warned that without that provision the state would create a permanent underclass. Teen workers who lobbied hard to be included on the standard track will arrive at $15 an hour in 2024. The tipped wage will rise gradually from $2.13 an hour to $5.13. That wage, combined with a worker’s tips, must equal the standard hourly minimum. “We applaud the inclusion of teen workers, who were at risk of being carved out of this legislation, as their work is just as valuable to the economy and their families as anyone else’s," said Brandon McKoy, director of government affairs for New Jersey Policy Perspective. “For the state’s agricultural and tipped workers, there remains more work to be done,” McKoy added. The New Jersey Business and Industry Association, which represents 20,000 businesses, said he announcement is “another hit” to small businesses trying to absorb new rules, like paid sick leave, energy costs and higher personal and corporate state tax rates. “Most small business owners pay what they can afford their workers. Now that it’s a mandate, it’s inevitable that some of those with the smallest profit margins will struggle, stagnate or simply fail," NJBIA President Michele Siekerka said in a statement. The Legislature in 2016, also under the control of Democrats, voted to gradually raise the minimum wage to $15 an hour without any exceptions. Then-Gov. Chris Christie, a Republican, vetoed that bill. Samantha Marcus may be reached at smarcus@njadvancemedia.com. Follow her on Twitter @samanthamarcus. Brent Johnson may be reached at bjohnson@njadvancemedia.com. Follow him on Twitter @johnsb01. Find NJ.com Politics on Facebook. Have a tip? Tell us. nj.com/tips Get the latest updates right in your inbox. Subscribe to NJ.com’s newsletters.<doc-sep>
TRENTON, N.J. -- New Jersey Gov. Phil Murphy and the Democratic leaders of the Legislature said Thursday they've reached a deal to raise the state's minimum wage to $15 an hour by 2024.The proposal announced by Murphy, Assembly Speaker Craig Coughlin and Senate President Steve Sweeney would raise the current rate from $8.85 to $10 by July 1, climbing by $1 a year until reaching $15 in 2024.The agreement represents the fulfillment of a major Murphy campaign promise that eluded him during his first year, despite full Democratic control in the state.Murphy says the deal is "historic" and will help about 1 million residents. "No one working a full-time join should ever live in poverty. Putting the minimum wage on a clear and responsible path to $15/hour is good for workers, good for our businesses and good for our economy," the sophomore governor and former Wall Street executive said in a statement.New Jersey would join a handful of states, including California, Massachusetts and New York, in phasing in a $15 hourly wage.The higher wage was a top priority among the state's influential progressive groups, who have been pushing the issue for years. In 2016, former Republican Gov. Chris Christie vetoed legislation phasing in a higher wage.Part of the delay stemmed from behind-closed-door discussions over special exemptions for the higher wage. The Thursday deal includes a few of those so-called carve-outs.Farm workers, for example, will see their minimum wage climb to just $12.50 an hour over five years. Seasonal workers and small businesses with five people or fewer would see their minimum wages reach $15 an hour by 2026.Sweeney called the plan "progressive" and said it puts the state on the forefront of a "national movement." Coughlin pointed out that the deal accommodates small businesses.The news of a deal met with mixed reactions. The left-leaning think tank New Jersey Policy Perspective called the deal one of the most consequential in state history. "The positive impact of this increase will reverberate throughout the economy as workers will immediately have more disposable income to spend in their local communities," said Brandon McKoy, the group's director of government and public affairs.The New Jersey Business and Industry Association, which has opposed minimum wage hikes, criticized the deal. "Today's announcement is another hit to small businesses who are absorbing cumulative costs in the form of new mandates, more subsidies for energy delivery and increased taxes as a means to balance the state budget," the group said in a statement.New Jersey's current rate stems from a 2013 constitutional amendment that raised the rate from $7.25 to $8.25, and thereafter according to inflation.It's unclear when the agreement would get a vote in the Legislature, where Democrats control both chambers.------