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A5179
ASSEMBLY, No. 5179
STATE OF NEW JERSEY
222nd LEGISLATURE
�
INTRODUCED JUNE 1, 2026
Sponsored by:
Assemblywoman� HEATHER SIMMONS
District 3 (Cumberland, Gloucester and Salem)
SYNOPSIS
���� Prohibits payment of subminimum wage due to age,
disability, injury, or status as apprentice, learner, or student through
special license issued by DOLWD.
CURRENT VERSION OF TEXT
���� As introduced.
��
An Act
concerning payment of subminimum wage, revising
various parts of the statutory law, and supplementing P.L.1966, c.113
(C.34:11-56a et seq.).
����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:
���� 1.��� (New section)� The
Legislature finds and declares that:
����
a.���� New
Jersey raised its minimum wage in 2018 because every worker deserves a fair
day�s pay for a fair day�s work.
���� b.��� The elimination of
subminimum wages is essential to promote economic justice and pay parity for
all, notwithstanding age, disability, injury, or status as an apprentice,
learner, or student.�
���� c.���� New Jersey law
currently authorizes employers to pay persons less than the State minimum wage
due to age, disability, injury, or status as an apprentice, learner, or student
upon the receipt of a special permit from the New Jersey Department of Labor
and Workforce Development�s Wage and Hour Division.
���� d.��� According to the
findings made by the United States Commission on Civil Rights in September
2020, it has been repeatedly found that, in particular, persons with
disabilities working under a special permit are limited from realizing their
full potential while allowing providers and businesses to profit from their
labor.
���� e.���� There are a growing
number of states that now recognize that the payment of subminimum wages is a
discriminatory practice and have thus imposed a ban on their use.
���� f.���� Therefore, beginning
with the effective date of this act, employers are prohibited from paying
subminimum wages to individuals due to age, disability, injury, or status as an
apprentice, learner, or student through the issuance of a special license from
the New Jersey Department of Labor and Workforce Development�s Wage and Hour
Division.
���� 2.��� Section 1 of P.L.1987,
c.455 (C.34:16-51) is amended to read as follows:
���� 1.��� The Legislature finds
and declares that many
[
handicapped
citizens
]
persons with disabilities
enrolled in
[
sheltered
(
]
extended
[
)
]
employment
programs at sheltered workshops
[
earn
subminimum wages in a noncompetitive working environment and therefore
]
require
financial assistance so that they may meet their transportation costs.
���� The Legislature further finds
and declares that the Department of Labor
and Workforce Development
through
its Division of Vocational Rehabilitation Services, in conjunction with the
Division of Developmental Disabilities in the Department of Human Services and
the sheltered workshops of this State, should play a major role in defraying
the costs of
[
public
]
transportation and paratransit expenses of
[
handicapped
citizens
]
persons with disabilities
enrolled in
[
sheltered
(
]
extended
[
)
]
employment
programs at sheltered workshops.
(cf: P.L.1987, c.455, s.1)
���� 3.��� Section 1 of P.L.2005,
c.318 (C.54:10A-5.38) is amended to read as follows:
���� 1.��� a.� A taxpayer shall be
allowed a credit against the tax imposed pursuant to section 5 of P.L.1945,
c.162 (C.54:10A-5), in an amount equal to 20% of the salary and wages paid by
the taxpayer during the privilege period for the employment of a qualified person,
but not to exceed $1,000 for each qualified person for the privilege period.
���� b.��� As used in this section:
���� "Qualified person"
means an extended employee, within the meaning of that term as set forth in
section 2 of P.L.1971, c.272 (C.34:16-40)
[
,
to whom the Commissioner of Labor and Workforce Development, under subsection
(b) of section 18 of P.L.1966, c.113 (C.34:11-56a17), shall have issued a
special license authorizing employment at wages less than the minimum wage
rate,
]
and who, for at least 26 weeks during the privilege period, shall have
performed at least 25 hours per week of work at or under the supervision of a
sheltered workshop pursuant to a contract between the taxpayer and the
sheltered workshop.
���� "Sheltered workshop"
means an occupation-oriented facility operated by a nonprofit agency with which
the Division of Vocational Rehabilitation Services in the Department of Labor
and Workforce Development shall have entered into a contract under section 4 of
P.L.1971, c.272 (C.34:16-42) to furnish extended employment programs to
eligible individuals.
���� c.���� The amount of the
credit applied under this section against the tax imposed pursuant to section 5
of P.L.1945, c.162 (C.54:10A-5), for a privilege period, when taken together
with any other credits allowed against the tax imposed pursuant to section 5 of
P.L.1945, c.162, shall not exceed 50% of the tax liability otherwise due and
shall not reduce the tax liability to an amount less than the statutory minimum
provided in subsection (e) of section 5 of P.L.1945, c.162.� The priority in
which credits allowed pursuant to this section and any other credits shall be
taken shall be determined by the Director of the Division of Taxation.� The
amount of the credit otherwise allowable under this section which cannot be
applied for the privilege period due to the limitations of this subsection or
under other provisions of P.L.1945, c.162 may be carried over, if necessary, to
the seven
privilege periods following the
privilege period for which the credit was allowed.
(cf: P.L.2005, c.318, s.1)
���� 4.��� Section 2 of P.L.2005,
c.318 (C.54A:4-11) is amended to read as follows:
���� 2.��� a.� A taxpayer shall be
allowed a credit against the tax otherwise due for the taxable year under the
"New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an
amount equal to 20% of the salary and wages paid by the taxpayer during the taxable
year for the employment of a qualified person during the taxable year but not
to exceed $1,000 for each qualified person for the taxable year.
���� b.��� As used in this section:
���� "Qualified person"
means an extended employee, within the meaning of that term as set forth in
section 2 of P.L.1971, c.272 (C.34:16-40)
[
,
to whom the Commissioner of the Department of Labor and Workforce Development,
under subsection (b) of section 18 of P.L.1966, c.113 (C.34:11-56a17), shall
have issued a special license authorizing employment at wages less than the
minimum wage rate,
]
and who, for at least 26 weeks during the taxable year, shall have performed at
least 25 hours per week of work at or under the supervision of a sheltered
workshop pursuant to a contract between the taxpayer and the sheltered
workshop.
���� "Sheltered workshop"
means an occupation-oriented facility operated by a non-profit agency with
which the Division of Vocational Rehabilitation Services in the New Jersey
Department of Labor and Workforce Development shall have entered into a contract
under section 4 of P.L.1971, c.272 (C.34:16-42) to furnish extended employment
programs to eligible individuals.
���� c.���� The amount of the
credits applied under this section for a taxable year, when taken together with
any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et
seq., shall not exceed 50% of the taxpayer's liability for tax for the taxable
year that bears the same proportional relationship to the total amount of such
liability as the amount of the taxpayer's gross income, derived from New Jersey
sources and attributable to the business or professional activity in which the
taxpayer employs the qualified person during that taxable year, bears to the
taxpayer's entire gross income for that year.� Credits allowed pursuant to this
section shall be taken only after the taxpayer has taken all credits allowed
under section 2 of P.L.2000, c.80 (C.54A:4-7).� The amount of the credit
otherwise allowable under this section which cannot be applied for the taxable
year due to the limitations of this subsection may be carried over, if
necessary to the seven taxable years following the taxable year for which the
credit was allowed.
���� d.��� A partnership shall not
be allowed a credit under this section directly, but the amount of credit of a
taxpayer in respect of a distributive share of partnership income under the
"New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be
determined by allocating to the taxpayer that proportion of the credit acquired
by the partnership that is equal to the taxpayer's share, whether or not
distributed, of the total distributive income or gain of the partnership for
its taxable year ending within or with the taxpayer's taxable year.
(cf: P.L.2005, c.318, s.2)
���� 5.��� Section 18 of P.L.1966,
c.113 (C.34:11-56a17) is repealed.
���� 6.��� This act shall take
effect July 1, 2027.
STATEMENT
���� This bill prohibits the
payment of subminimum wages to individuals due to age, disability, injury, or
status as an apprentice, learner, or student through the issuance of a special
license from the New Jersey Department of Labor and Workforce Development�s
Wage and Hour Division.� It is the view of the sponsor that the elimination of
subminimum wages is essential to promote economic justice and pay parity for
all. �In particular, persons with disabilities working under a special permit
are limited from realizing their full potential while allowing providers and
businesses to profit from their labor.� This bill repeals the law establishing
special certificates or licenses for the employment of individuals due to age,
disability, injury, or status as an apprentice, learner, or student at wages
lower than the minimum wage.