COURT HOUSE – The Cape May County Chamber of Commerce issued a press release reminding all businesses in the county that, as of Jan. 1, the minimum wage for most employees rose to $14.13 per hour.
Gov. Phil Murphy signed legislation in February 2019, which increases the minimum wage each year until it reaches $15 per hour by 2024 for most employees.
Under the law, seasonal and small employers were given until 2026 to pay their workers $15 per hour to lessen the impact on their businesses.
The federal Small Business Administration (SBA) defines a small business as most manufacturing companies with 500 employees or fewer, and most non-manufacturing businesses with average annual receipts under $7.5 million.
Per Vicki Clark, interim president, Cape May County Chamber of Commerce, most businesses in Cape May County would be considered small businesses. The minimum hourly wage for these employees increased to $12.93 per hour Jan. 1, up from $11.90.
Agricultural workers are guided by a separate minimum wage timetable and were given until 2027 to reach the $15 per hour minimum wage.
Tipped workers’ cash wage will increase to $5.26 per hour, with employers able to claim an $8.87 tip credit, an increase in the maximum allowable tip credit of $1.
If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.
For more on the rights and protections of tipped workers, visit https://www.nj.gov/labor/worker-protections/myworkrights/tippedworkers.shtml.
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