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A1812
ASSEMBLY, No. 1812
STATE OF NEW JERSEY
222nd LEGISLATURE
�
PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION
Sponsored by:
Assemblyman ANTHONY S. VERRELLI
District 15 (Hunterdon and Mercer)
SYNOPSIS
���� Requires payment of minimum wage to minors; requires
payment of overtime to minors in certain circumstances; codifies certain
exemptions to overtime payment requirements.
CURRENT VERSION OF TEXT
���� Introduced Pending Technical Review by Legislative
Counsel.
��
An Act
concerning the payment of minimum wage and overtime to minors, codification of
certain regulatory overtime exemptions, and amending P.L.1966, c.113 and
P.L.1980, c.90
.
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
����� 1.�� Section
5 of P.L.1966, c.113 (C.34:11-56a4) is amended to read as follows:
����� 5.�� a.
Except as provided in subsections c., d., e. g., and i. of this section, each
employer shall pay to each of his employees wages at a rate of not less than
$8.85 per hour as of January 1, 2019 and, on January 1 of 2020 and January 1 of
each subsequent year, the minimum wage shall be increased by any increase in
the consumer price index for all urban wage earners and clerical workers
(CPI-W) as calculated by the federal government for the 12 months prior to the
September 30 preceding that January 1, except that any of the following rates
shall apply if it exceeds the rate determined in accordance with the applicable
increase in the CPI-W for the indicated year: on July 1, 2019, the minimum wage
shall be $10.00 per hour; on January 1, 2020, the minimum wage shall be $11.00
per hour; and on January 1 of each year from 2021 to 2024, inclusive, the
minimum wage shall be increased from the rate of the preceding year by $1.00
per hour.� If the federal minimum hourly wage rate set by section 6 of the
federal "Fair Labor Standards Act of 1938" (29 U.S.C. s.206), or a
successor federal law, is raised to a level higher than the State minimum wage
rate set by this subsection, then the State minimum wage rate shall be
increased to the level of the federal minimum wage rate and subsequent
increases based on increases in the CPI-W pursuant to this section shall be
applied to the higher minimum wage rate.� If an applicable wage order has been
issued by the commissioner under section 17 (C.34:11-56a16) of this act, the
employer shall also pay not less than the wages prescribed in said order.� The
wage rates fixed in this section shall not be applicable to part-time employees
primarily engaged in the care and tending of children in the home of the
employer,
[
to persons
under the age of 18 not possessing a special vocational school graduate permit
issued pursuant to section 15 of P.L.1940, c.153 (C.34:2-21.15),
]
or to persons employed as salesmen of motor
vehicles, or to persons employed as outside salesmen as such terms shall be
defined and delimited in regulations adopted by the commissioner, or to persons
employed in a volunteer capacity and receiving only incidental benefits at a
county or other agricultural fair by a nonprofit or religious corporation or a
nonprofit or religious association which conducts or participates in that fair.
����� b.
(1) An employer shall also pay each employee
, including minors between 16
and 18 years of age who work in accordance with subsection b. of section 3 of
P.L.1940, c.153 (C.34:2-21.3), except for minors between 16 and 18 years of age
who work in accordance with subsection c. of section 3 of P.L.1940, c.153
(C.34:2-21.3) and except for any employee working in accordance with section 1
of P.L.1967, c.89 (C.34:11-56a4.1),
not less than 1 1/2 times such
employee's regular hourly rate for each hour of working time in excess of 40
hours in any week, except that this overtime rate shall not apply
,
regardless of the age of an employee
: to any individual employed in a bona
fide executive, administrative, or professional capacity; or to employees
engaged to labor on a farm or employed in a hotel; or to an employee of a
common carrier of passengers by motor bus; or to a limousine driver who is an
employee of an employer engaged in the business of operating limousines; or to
employees engaged in labor relative to the raising or care of livestock
; or
to an employee engaged in a seasonal amusement occupation; or to an skilled
mechanics employed by a nonmanufacturing employer primarily engaged in the
business of selling new or new and used motor vehicles or in the business of
automotive or truck repair, provided that the mechanic shall be:
�����
(a)� paid
on a flat rate or incentive rate basis; and
�����
(b)� guaranteed
a basic contractual hourly rate, separate from and exclusive from the flat or
incentive rate, which contractual hourly rate shall include payment of time and
one-half of the hourly rate for all hours actually worked in excess of 40 hours
per week and shall be at least the minimum wage
.
����� (2)� Employees
engaged on a piece-rate or regular hourly rate basis to labor on a farm shall
be paid for each day worked not less than the applicable minimum hourly wage
rate multiplied by the total number of hours worked.
����� (3)� Full-time
students
, including minors,
may be employed by the college or university
at which they are enrolled at not less than
[
85% of
]
the effective
applicable minimum wage rate.
����� �c.� Employees
of a small employer, and employees who are engaged in seasonal employment,
except for employees who customarily and regularly receive gratuities or tips
who shall be subject to the provisions of subsections a. and d. of this
section, shall be paid $8.85 per hour as of January 1, 2019 and, on January 1
of 2020 and January 1 of each subsequent year, that minimum wage rate shall be
increased by any increase in the consumer price index for all urban wage
earners and clerical workers (CPI-W) as calculated by the federal government
for the 12 months prior to the September 30 preceding that January 1, except
that any of the following rates shall apply if it exceeds the rate determined
in accordance with the applicable increase in the CPI-W for the indicated year:
on January 1, 2020, the minimum wage shall be $10.30 per hour; and on January 1
of each year from 2021 to 2025, inclusive, the minimum wage shall be increased
from the rate of the preceding year by eighty cents per hour, and, in 2026, the
minimum wage shall be increased from the rate of the preceding year by seventy
cents per hour, and, in each year from 2027 to 2028 inclusive, the minimum wage
for employees subject to this subsection c. shall be increased by the same
amount as the increase for employees subject to subsection a. of this section
based on CPI-W increases, plus one half of the difference between $15.00 per
hour and the minimum wage in effect in 2026 for employees pursuant to
subsection a. of this section, so that, by 2028, the minimum wage for employees
subject to this subsection shall be the same as the minimum wage in effect for
employees subject to subsection a. of this section.� If the federal minimum
hourly wage rate set by section 6 of the federal "Fair Labor Standards Act
of 1938" (29 U.S.C. s.206), or a successor federal law, is raised to a
level higher than the State minimum wage rate set by this subsection, then the
State minimum wage rate shall be increased to the level of the federal minimum
wage rate and subsequent increases based on increases in the CPI-W pursuant to
this subsection shall be applied to the higher minimum wage rate.
����� �d.� Employees
engaged on a piece-rate or regular hourly rate basis to labor on a farm shall
be paid $8.85 per hour as of January 1, 2019 and, on January 1 of 2020 and
January 1 of each subsequent year, that minimum wage rate shall be increased by
any increase in the consumer price index for all urban wage earners and
clerical workers (CPI-W) as calculated by the federal government for the 12
months prior to the September 30 preceding that January 1, except that any of
the following rates shall apply if it exceeds the rate determined in accordance
with the applicable increase in the CPI-W for the indicated year:
����� (1)� on
January 1, 2020, the minimum wage shall be $10.30 per hour; on January 1, 2022,
the minimum wage shall be $10.90 per hour; and on January 1 of each year from
2023 to 2024, inclusive, the minimum wage shall be increased from the rate of
the preceding year by eighty cents per hour; and
����� (2)� subject
to the provisions of paragraph (3) of this subsection d., minimum wage rates
shall be increased as follows: on January 1 of 2025, the minimum wage shall be
increased to $13.40, and on January 1 of each year from 2026 to 2027,
inclusive, the minimum wage shall be increased from the rate of the preceding
year by eighty cents per hour, and, in each year from 2028 to 2030 inclusive,
the minimum wage for employees subject to this subsection d. shall be increased
during that year by the same amount as the increase in that year for employees
subject to subsection a. of this section based on CPI-W increases, plus one
third of the difference between $15.00 per hour and the minimum wage in effect
in 2027 for employees pursuant to subsection a. of this section, so that, by
2030, the minimum wage for employees subject to this subsection shall be the
same as the minimum wage in effect for employees subject to subsection a. of
this section.
����� (3)� Not
later than March 31, 2024, the commissioner and the Secretary of Agriculture
shall review the report issued by the commissioner pursuant to subsection b. of
section 4 of P.L.2019, c.32 (C.34:11-56a4.10) and shall consider any
information provided by the secretary regarding the impact on farm employers
and the viability of the State's agricultural industry of the increases of the
minimum wage made pursuant to paragraph (1) of this subsection, and the
potential impact of the increases which would be set by paragraph (2) of this
subsection, including comparisons with the wage rates in the agricultural
industries in other states, and shall recommend: approval of the increases set
forth in paragraph (2) of this subsection; disapproval of the increases set forth
in paragraph (2) of this subsection; or an alternative manner of changing the
minimum wage after 2024 for employees engaged on a piece-rate or regular hourly
rate basis to labor on a farm. In contemplation of the possibility that the
commissioner and the secretary are unable to agree on the recommendation
required by this paragraph, by December 31, 2021, the Governor shall appoint a
public member subject to advice and consent by the Senate, who will serve as a
tie-breaking member if needed.� The increases set forth in paragraph (2) of
this subsection shall take effect unless there is a recommendation pursuant to
this paragraph to disapprove the increases or for an alternative manner of
changing the minimum wage after 2024 for employees engaged on a piece-rate or
regular hourly rate basis to labor on a farm and the Legislature, not later
than June 30, 2024, enacts a concurrent resolution approving the implementation
of that recommendation.� Beginning in 2024, the commissioner, secretary, and
public member shall meet biennially to make either a one or two year
recommendation to the Legislature for implementation by way of concurrent
resolution.
����� (4)� If
the federal minimum hourly wage rate set by section 6 of the federal "Fair
Labor Standards Act of 1938" (29 U.S.C. s.206), or a successor federal
law, is raised to a level higher than the State minimum wage rate set by this
subsection, then the State minimum wage rate shall be increased to the level of
the federal minimum wage rate and subsequent increases based on increases in
the CPI-W pursuant to this subsection shall be applied to the higher minimum
wage rate.
����� �e.� With
respect to an employee who customarily and regularly receives gratuities or
tips, every employer is entitled to a credit for the gratuities or tips
received by the employee against the hourly wage rate that would otherwise be
paid to the employee pursuant to subsection a. of this section of the following
amounts: after December 31, 2018 and before July 1, 2019, $6.72 per hour; after
June 30, 2019 and before January 1, 2020, $7.37 per hour; during calendar years
2020, 2021 and 2022, $7.87 per hour; during calendar year 2023, $8.87 per hour;
and during calendar year 2024 and subsequent calendar years, $9.87 per hour.
����� �f.�� Notwithstanding
the provisions of this section to the contrary, every trucking industry
employer shall pay to all drivers, helpers, loaders and mechanics for whom the
Secretary of Transportation may prescribe maximum hours of work for the safe
operation of vehicles, pursuant to section 31502(b) of the federal Motor
Carrier Act, 49 U.S.C. s.31502(b), an overtime rate not less than 1 1/2 times
the minimum wage required pursuant to this section and
N.J.A.C. 12:56-3.1.� Employees engaged in the trucking industry shall be paid
no less than the minimum wage rate as provided in this section and N.J.A.C.
12:56-3.1.� As used in this section, "trucking industry employer"
means any business or establishment primarily operating for the purpose of
conveying property from one place to another by road or highway, including the
storage and warehousing of goods and property. Such an employer shall also be
subject to the jurisdiction of the Secretary of Transportation pursuant to the
federal Motor Carrier Act, 49 U.S.C.s.31501 et seq., whose employees are exempt
under section 213(b)(1) of the federal "Fair Labor Standards Act of
1938," 29 U.S.C. s.213(b)(1), which provides an exemption to employees
regulated by section 207 of the federal "Fair Labor Standards Act of
1938," 29 U.S.C. s.207, and the Interstate Commerce Act, 49 U.S.C. s.501
et al.
����� g.�� Commencing
on January 1, 2020, a training wage of not less than 90 percent of the minimum
wage rate otherwise set pursuant to subsection a. of this section may be paid
to an employee who is enrolled in an established employer on-the-job or other
training program which meets standards set by regulations adopted by the
commissioner.� The period during which an employer may pay the training wage to
the employee shall be the first 120 hours of work after hiring the employee in
employment in an occupation in which the employee has no previous similar or
related experience.� An employer shall not utilize any employee paid the
training wage in a manner which causes, induces, encourages or assists any
displacement or partial displacement of any currently employed worker,
including any previous recipient of the training wage, by reducing hours of a
currently employed worker, replacing a current or laid off employee with a
trainee, or by relocating operations resulting in a loss of employment at a
previous workplace, or in a manner which replaces, supplants, competes with or
duplicates any approved apprenticeship program.� An employer who pays an
employee a training wage shall make a good faith effort to continue to employ
the employee after the period of the training wage expires and shall not hire
the employee at the training wage unless there is a reasonable expectation that
there will be regular employment, paying at or above the effective minimum
wage, for the trainee upon the successful completion of the period of the
training wage.� If the commissioner determines that an employer has made
repeated, knowing violations of the provisions of this subsection regarding the
payment of a training wage, the commissioner shall suspend the employer's right
to pay a training wage for a period set pursuant to regulations adopted by the
commissioner, but not less than three years.
����� h.�� The
provisions of this section shall not be construed as prohibiting any political
subdivision of the State from adopting an ordinance, resolution, regulation or
rule, or entering into any agreement, establishing any standard for vendors,
contractors and subcontractors of the subdivision regarding wage rates or
overtime compensation which is higher than the standards provided for in this
section, and no provision of any other State or federal law establishing a
minimum standard regarding wages or other terms and conditions of employment
shall be construed as preventing a political subdivision of the State from
adopting an ordinance, resolution, regulation or rule, or entering into any
agreement, establishing a standard for vendors, contractors and subcontractors
of the subdivision which is higher than the State or federal law or which
otherwise provides greater protections or rights to employees of the vendors,
contractors and subcontractors of the subdivision, unless the State or federal
law expressly prohibits the subdivision from adopting the ordinance,
resolution, regulation or rule, or entering into the agreement.
����� i.��� Effective
on the first day of the second month next following the effective date of
P.L.2020, c.89 (C.30:4D-7cc et al.), the minimum wage for long-term care
facility direct care staff members shall be in an amount that is $3 higher than
the prevailing minimum wage established pursuant to subsection a. of this
section.
(cf:
P.L.2020, c.89, s.2)
����� 2.�� Section
8 of P.L.1980, c.90 (C.34:11-56a30) is amended to read as follows:
����� 8.��
[
Except with respect to the minimum wage rates
established by P.L.1966, c. 113, s.5, the
]
The
provisions of the "New Jersey State Wage and Hour Law,"
P.L.1966, c.113 (C.34:11-56a et seq.) are applicable to the employment of
minors
, including the minimum wage rates and overtime rates established by
section 5 of P.L.1966, c.113 (C.34:11-56a4)
.� Wage orders pertaining to
minors
[
including those promulgated under R.S. 34:11-34
through R.S. 34:11-56, on the effective date of this act
]
shall
[
remain in force until superseded by wage orders or
regulations issued pursuant to P.L.1966, c. 113
]
be superseded by the provisions of P.L.��� ,
c.��� (pending before the Legislature as this bill) on the effective date of
P.L.��� , c.��� (pending before the Legislature as this bill)
.
(cf:
P.L.1980, c.90, s.8)
���� 3. This act shall take effect
immediately.
STATEMENT
����� This bill removes the exception to the payment of
minimum wage to minors from the �New Jersey State Wage and Hour Law.�� Under
the bill, every working minor is entitled to receive the minimum wage.� The
bill eliminates any exceptions to the payment of minimum wage and overtime to
minors, including by wage order or in certain industries in which under current
law the payment of the minimum wage to minors is not required.
����� The bill provides that the overtime payment law
includes minors between 16 and 18 years of age who work up to 50 hours during
the summer months.� However, the bill clarifies that the overtime payment
requirements do not apply to minors or other employees working at summer camps,
conferences and retreats operated by any nonprofit or religious corporation or
association during the months of June, July, August or September.� This bill
does not change the current law�s exemption of these entities from paying the
minimum wage.
����� The bill does not change existing law for an employee
who falls into certain categorical exemptions, such as a bona fide executive,
is not entitled to overtime pay regardless of age.
����� Additionally, the bill codifies two administrative
regulation exemptions to overtime pay:
����� (1) employees engaged in seasonal amusement
occupations; and
����� (2) skilled mechanics employed by a nonmanufacturing
employer primarily engaged in the business of selling new or new and used motor
vehicles or in the business of automotive or truck repair, provided that the
mechanic will be paid on a flat rate or incentive rate basis; and guaranteed a
basic contractual hourly rate, separate from and exclusive from the flat or
incentive rate, which contractual hourly rate will include payment of time and
one-half of the hourly rate for all hours actually worked in excess of 40 hours
per week and will be at least the minimum wage.