New Jersey minimum wage will increase to $8.60 in January

The minimum wage in New Jersey will increase from $8.44 per hour to $8.60 per hour on January 1, 2018, according to a notice of administrative changes by the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance. The change reflects an increase in the cost of living of 1.9%.
The Department requested, and the Office of Administrative Law agreed to permit, an administrative change to New Jersey Administrative Code 12:56-3.1(a), to provide that every employee shall, effective January 1, 2018, be paid not less than $8.60 per hour, the minimum hourly rate set by section 6(a)(1) of the federal Fair Labor Standards Act of 1938 (29 U.S.C. §206(a)(1)), or the rate provided under New Jersey Statutes Annotated 34:11-56a4, whichever is greatest. Since the adjusted rate continues to be the greater rate, the minimum wage of $8.60 per hour applies January 1.
New Jersey Administrative Code 12:56-3.1(b) requires the Department, on or about September 30 of each year, to revise the minimum hourly wage rate “based on any percentage increase during the one-year period of August of the prior year through August of the current year of the Consumer Price Index (CPI) for All Urban Wage Earners and Clerical Workers (CPI-W, U.S. City Average), as released by the United States Department of Labor, Bureau of Labor Statistics.” The Department is also to provide public notice of the adjustment in the New Jersey Register and also must publish notice on the Department’s website no later than September 30 of each year.
The Department determined that the CPI-W for August 2016 was 234.904 and for August 2017 it was 239.448. This reflects a change in the index over the one-year period of 4.544 or an increase of 1.9 percent (4.544/234.904×100). Using as a base for the calculation the current New Jersey minimum wage rate of $8.44, a 1.9 percent increase, rounded to the nearest penny, is $0.16, yielding an adjusted state minimum hourly wage of $8.60 effective January 1, 2018. (State of New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance, Notice of Administrative Changes, Minimum wage, N.J.A.C. 12:56-3.1, September 29, 2017.)

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