NEW YORK/NEW JERSEY – As 2022 draws to a close, workers in New York and New Jersey can expect currency changes as wage increases are set in both states.
As for the Empire State, minimum wage workers in most areas of New York will see changes before the new year, with wage increases expected through the end of December.
According to the state Department of Labor, the minimum for workers in areas outside New York City, Long Island and Westchester County will increase from $13.20 an hour to $14.20, an increase of 7.5%.
The pay increase means an extra $40 a week for someone working full time at a minimum wage job. The new rate will be effective from December 31.
Workers in New York City, Westchester County and Long Island already earn at least $15 an hour. All fast food workers in the state also receive a minimum wage of $15 per hour. Those minimum amounts will not increase this year.
Minimum wage rates for tipped workers, such as servers, vary by region.
New York instituted a staggering program of minimum wage increases in 2016, with the goal of eventually raising wages to $15 an hour everywhere. The annual increase is set each year by the Budget Division and is based on economic indices, including the Consumer Price Index, which measures inflation.
Inflation remains at its highest level in decades for most of 2022, although it has slowed somewhat in recent months.
The $1 per hour increase this year follows a 70-percent increase the year before.
The minimum wage in New York has increased significantly over the past 10 years. That’s $7.25 an hour a decade ago, according to the Labor Department, which will halve that wage once the next increase goes into effect.
The wage was still $8.75 an hour in 2015, before lawmakers approved plans for regular increases.
change in new jersey
According to New Jersey’s Department of Labor and Workforce Development, the minimum wage for the Garden State will be $14.13 an hour, an increase of $1.13 an hour for most workers effective January 1, 2023.
Each wage increase will be linked to the CPI-W (Consumer Price Index for Urban Salaried and Clerical Employees) applicable on the 1st of each year. In early 2019, New Jersey Governor Phil Murphy signed legislation that would increase the minimum wage.
Small and seasonal businesses are exempt. Under the law, small employers and temporary workers were required to pay their workers $15 an hour until 2026 to minimize the impact on their businesses. The hourly minimum wage for these workers will increase to $12.93/hour on January 1, up from $11.90 previously.