On Monday, Gov. Phil Murphy of New Jersey, signed a law that paves path for New Jersey workers to earn a minimum wage of $15/hour. New Jersey, preceded by California, Massachusetts, New York, and District of Columbia, has now joined the growing list of states adopting the left-leaning policy.
The measure attempts to introduce higher wages in subsequent amounts over the course of next five years.
Furthermore, According to Crain’s New York, “The bill raises the current $8.85 minimum wage to $10 an hour in July, and then increases the rate by $1 in subsequent years until it reaches $15 in 2024.”
Thousands of workers in New Jersey are now going to earn higher wages under the new bill. For most workers, this is how the schedule looks:
- $10 on July 1
- $11 on January 1, 2020
- $12 on January 1, 2021
- $13 on January 1, 2022
- $14 on January 1, 2023
- $15 on January 1, 2024
But How Does It Affect Businesses?
Preparing and budgeting for the next five years will benefit home owners, renters, and commercial property owners directly affected by the increase in wages. At Guardian, we are studying and examining the effects of the minimum wage increase on all businesses. Consequently, we aim to aid businesses by preparing them for the next five years and helping them minimize costs.
The new minimum wage law applies to most workers with the exception of seasonal workers, small businesses and tipped employees.
Workers employed by small businesses (with five workers or fewer) and seasonal employees (whose job falls only in the window of May 1 to Sep. 30) will have to wait until 2026 for their minimum wage to reach $15. Tipped workers currently earning an hourly wage of $2.13 will witness an increase to $5.13 an hour by 2024.
Proponents believe that increasing minimum wage would have long-standing benefits for the economy. However, there is no denial that businesses are likely to incur higher costs in the short run.
And How Can Guardian Help?
But behold the anxiety, Guardian is here to help you eliminate unnecessary costs. While you focus on profits, we help prevent loss.
Our leaders, like Jonathan Kessler, Guardian’s Senior Vice President, and Jeff Logan, Guardian’s Regional Director of Business Development, are dept at budgeting and cost cutting. Our approach includes developing a tailored plan that addresses the specific needs of your facilities. Above all, it helps assure the achievement of your objectives and generates immediate and cumulative cost savings.