No Change to New Jersey Minimum Wage for 2016

The New Jersey Department of Labor and Workforce Development (the “NJDOL”) recently announced that the minimum hourly wage rate of $8.38 will remain unchanged for the upcoming 2016 calendar year.

Under the New Jersey Administrative Code Section 12:56-3.1(b), the NJDOL is empowered to revise, on an annual basis, on or about September 30th, the state minimum hourly wage rate.

At the end of last month, the NJDOL completed its annual calculations based on a comparison of the August 2014 and August 2015 Consumer Price Index for all urban wage earners and clerical workers and determined that there will be no adjustment to the New Jersey state minimum hourly wage rate for 2016.

Although there are currently proposals pushed by the White House to raise the federal minimum wage rate to $10.10 for all employees, the current rate is set at $7.25 for most employees, with the higher $10.10 rate for the employees of federal contractors. With the state minimum wage rate higher than that established by the federal government, New Jersey employers should expect no changes to the 2016 state minimum wage rate. Of course, this rate remains subject to change for 2017 based upon the DOL’s calculations next year.

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