Minimum wage hike proposed for N.J.
By John Reitmeyer
The Record, 12/22/07

New Jersey would have the highest minimum wage in the nation if the $1.10 increase being recommended by a state-authorized study commission becomes law.

The Minimum Wage Advisory Commission released a report Friday that calls for an immediate increase of the current $7.15 per hour minimum wage to $8.25.

The report also recommends the minimum wage be adjusted annually to keep up with the rate of inflation.

If approved by the state Legislature, which authorized the commission's study, and signed into law by Governor Corzine, New Jersey's minimum wage would best by a quarter the minimum wage in Massachusetts, which currently has the nation's highest at $8.

New Jersey would also join 10 other states that already use the Consumer Price Index to calculate annual minimum wage adjustments if that recommendation is enacted.

"New Jersey's minimum-wage workers are struggling to make ends meet," said state Labor Commissioner David Socolow, one of the commission's five members. "Without an immediate increase in the minimum wage, and annual cost-of-living increases every year, these workers fall even further behind."

By the numbers •  $7.15 is the per-hour minimum wage in both New Jersey and New York. •  $8.25 is the minimum wage a New Jersey study commission recommends. •  $7.65 is Connecticut's minimum wage. •  $6.25 is Pennsylvania's minimum wage. •  $5.85 is the federal minimum wage.

The study commission, formed by legislation passed in 2005, held meetings and took public comments on the issue throughout the year.

The panel concluded the current minimum wage -- an hourly rate of $7.15, or about $14,800 annually for a full-time worker -- is too low to support an individual in New Jersey.

In North Jersey, where median household income is $71,792, the costs of an average two-bedroom apartment are $1,135 a month. Homes in North Jersey cost nearly $500,000 on average to purchase.

Jon Shure, president of New Jersey Policy Perspective, said: "$7.15 an hour is not enough in New Jersey." The non-partisan public advocacy group submitted a report to the commission in May that called for an $8.50 minimum wage. Shure added, "$8.25 comes closer."

Right now, a full-time minimum-wage employee in New Jersey makes nearly $3,000 less than the federal poverty level, which is $17,160. An increase of the minimum wage to $8.25 would put such a worker right at the poverty level.

The state's last minimum-wage increase was in 2006. That one pushed minimum wage from $6.15 an hour to $7.15. The minimum wage was $5.15 in 2005.

Philip Kirschner, the president of the New Jersey Business and Industry Association, said New Jersey businesses need a break, not another minimum-wage increase.

"Given the two increases that we've had since 2005, that would be about a 55 percent increase in three years," said Kirschner, whose organization serves more than 23,000 employers in the state.

He also said a further increase could hurt the state if it results in employers setting up shop across the border.

"Many employers are not going to pay that much more for the same work they can get in New York or Pennsylvania," said Kirschner, who also served on the commission but didn't agree with its conclusion.

The minimum wage is $7.15 in New York, $7.65 in Connecticut and $6.25 in Pennsylvania. Delaware's minimum wage is set to increase to $7.15 on Jan. 1.

Meanwhile, the national minimum wage is $5.85, having recently been raised by Congress from $5.15.

Shure stressed that an annual tie-in to inflation would also be an important step.

"This is a chance for us to be a leader in our region," he said.

The 10 states that link the minimum wage to inflation are Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont and Washington.