ELIZABETH, N.J. (CBS/AP) — New Jersey on Monday became the latest state boost its hourly minimum wage to $15 after Democratic Gov. Phil Murphy signed into law a measure phasing in the higher rate over five years. However, one state senator warns the new minimum wage law could lead residents to pumping their own gas in the Garden State.
Murphy signed the bill alongside Democratic legislative leaders in Elizabeth after the trio announced a deal on the higher wage last month.
“For far too long, too many of our fellow New Jerseyans have been struggling to survive on wages that have not kept up with the cost of living,” said Murphy. “I am incredibly proud to sign legislation that raises the minimum wage to $15 per hour, ensuring that the most vulnerable among us will have the means to put food on the table, while growing our economy and addressing priorities of the small business community.”
New Jersey joins California, Massachusetts, New York and the District of Columbia in phasing in the higher rate. The $15 wage is a prominent policy goal of left-leaning groups, as well as the fulfillment of a key campaign promise by Murphy.
“Working families deserve financial security. A higher minimum wage will support families, strengthen our economy, and help make New Jersey more affordable,” Murphy said in a tweet announcing his plan to sign the legislation Monday.
Republicans and many businesses, though, testified during hearings that the higher wage will increase costs and hurt commerce.
Republican state Sen. Declan O’Scanlon warns that raising the minimum wage to $15 an hour will lead people to pump their own gas in the state.
“New Jersey is basically famous for not wanting to pump our own gas. In fact, I’ve previously received phone calls making sure to let me know that ‘Jersey Girls Don’t Pump Gas’! Well, we better be prepared to start pumping our own gas soon because one of the industries that is bracing for massive losses is our fuel merchants. Local gas station owners testified before us that they cannot sustain employees and keep their businesses open without bringing in self-serve gas,” O’Scanlon said in a statement.
The bill raises the current $8.85 minimum wage to $10 an hour in July, and then increases the rate by $1 in subsequent years until it reaches $15 in 2024, but not for all workers.
Farm workers’ wages will climb to $12.50 over five years, for example. Small businesses with and seasonal employees would see their minimum wage reach $15 an hour in 2026. Tipped workers, who currently have a minimum hourly wage of $2.13, would see it climb to $5.13 an hour by 2024.
(© Copyright 2019 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)