Why NJ’s new minimum wage hike doesn’t benefit the right people

Think about this for a moment. New Jersey has one of the highest minimum pay rates in the nation, which just went up even more now that we crossed into 2025. It's not the highest overall, but it's up there. And for good reason too.

New Jersey is an exceptionally expensive state. Sure, some places might perhaps top us, but overall, it's not a cheap state to live in.

Not only do goods in the state seem more expensive here than in other places, but our high taxes don't help the situation. Just look at how much the average New Jerseyan has been cutting back on just the past few years alone.

Higher rate to help with costs

From coffee to supermarket staples, to simply going out and having a good time. Those are just some of the ways those in New Jersey have been cutting back to help make ends meet.

As for the minimum wage? Yes, it should be raised to help keep up with inflation. But at the same time, was it a little extreme for us to raise it to $15 per hour in the first place?

Probably a little lower than that would've made more sense, but that ship has now sailed and the minimum wage is now an additional 36 cents higher than it was in 2024 (The current rate is now $15.49 per hour).

Now, as for the question, is a 36-cent minimum wage pay hike really benefit the right people? My response to that is no, but not for the reason you might be thinking.

Higher levels

One thing I never felt was fair with how aggressively our minimum wage went up, which has to do with senior employees. How many of them busted their butts to get to where they are and never saw such a pay hike in their career?

Entry-level pay rises, but senior employee rates stayed the same (for the most part). How is that fair? And the price increases we looked at earlier directly point to why we need to now give senior employees a boost.

The minimum wage goes up at a fast rate, but so does everything else. That's all well and fine for the newbies, but it doesn't help those higher up on the totem poll.

Focus on tenured

Perhaps it's too late for 2025, but maybe in 2026, we allow companies to give their more tenured employees an automatic cost of living increase instead of the entry-level folks. They're already at $15.49 per hour, let them sit for a bit.

And maybe to help companies out, perhaps allow them a tax break as a reward for giving more raises across the board. Especially New Jersey's small businesses that are the backbone of the labor force.

That's what I mean when I ask if the minimum wage hike is really benefitting the right people. It certainly doesn't for those who busted their butts to get where they are today, yet won't see a cent of it.

The above post reflects the thoughts and observations of New Jersey 101.5 Sunday morning host & content contributor Mike Brant. Any opinions expressed are his own.