New Jersey State Senate President Stephen Sweeney introduced a resolution on February 11, which proposes a ballot referendum to amend the State Constitution to raise the state’s minimum wage to $15 per hour. If passed, this would affect permanent and temporary disability benefits. The proposed legislation provides that initially the minimum wage would be raised to $9 and then to $1 per year until it reaches $15. Such an increase would have an impact upon what employers pay their current minimum wage workers who are injured on the job, both in temporary benefits and permanent disability benefits. The increase would occur in those cases for minimum wage earners working 22.5 hours or more week since temporary and permanent benefit rates would exceed the minimum for each now typically paid to these workers.
This is not the first time the New Jersey Legislature has acted on increasing the minimum wage. Over the objections of Governor Christie in November 2013 the legislature was successful in having a question placed on the ballot that was overwhelmingly approved by the state voters. As a result of that approved ballot measure in January 2014, the minimum wage went from $7.25 to $8.25.
In order to be placed on the general election ballot over the opposition of Gov. Christie, the Senate’s resolution must be approved in the legislature for two consecutive years. Alternatively, the vote could place it on the election ballot for 2016 if it is passed by a 3/5's majority in Senate and the General Assembly. The increases are opposed by Gov. Christie and the New Jersey Business & Industry Council and they have raised concerns with the Southern New Jersey Chamber of Commerce.
In 2016, a worker injured on the job is entitled to a minimum temporary disability benefits rate of $232 per week. Currently, the minimum wage is $8.35 per hour and in order to earn weekly wages equivalent to the minimum temporary disability benefit rate benefits rate of $232 per week a worker will have to work 27.78 hours in one week. If the minimum wage is in fact raised to $15 per hour same worker would only have to work 15.4 hours in a single week to earn the equivalent of the minimum temporary disability benefits rate for 2016.
Disclaimer: The contents of this post are for informational purposes only, are not legal advice and do not create and attorney-client relationship.
For more information contact Richard Tavani at rtavani@wglaw.com or 856.667.5805