$9.25 Minimum Wage in NJ?

From the Home News Tribune:

Wage hike raises hope

Perth Amboy resident Brooke Pantelup says the hourly wage she makes at Old Navy isn’t enough to cover her expenses — and she lives with her parents.

Pantelup, 25, makes about $8 an hour working at the Old Navy in Edison’s Menlo Park Mall. That’s higher than the state minimum wage of $7.15, but some experts say a federal hike could have a ripple effect on lower-wage workers, even in states with higher minimum wages.

“The federal increase could be a trigger for more advocacy in New Jersey on behalf of low-wage workers,” said Jon Shure, president of New Jersey Policy Perspective.

The House of Representatives on Wednesday voted to increase the federal minimum wage to $7.25 in three increments over the next two years. The federal minimum wage is $5.15 an hour and hasn’t seen an increase since 1997.

The bill still has to pass in the Senate, and some Republicans have said they wouldn’t vote for a minimum-wage bill that doesn’t include tax breaks to offset possible effects on businesses.

In New Jersey, where the cost of living is a third higher than the national average, legislators upped the minimum in 2005.
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The commission will evaluate the state’s minimum wage each year and submit a written report to the governor and Legislature.

“When that commission meets then, hopefully one of the things they would consider is where New Jersey’s minimum wage stands compared to the federal wage,” Shure said. “I frankly believe if the federal minimum wage was $7.25, New Jersey’s ought to be $9.25 because the cost of living in New Jersey is a third higher than the national average.”

But some economists believe a change like that won’t go into effect until the federal wage reaches its highest level. The House bill calls for a phased increase — the minimum wage would jump to $5.85 60 days after the bill became a law, $6.55 a year later and $7.25 the year after that.

“New Jersey workers are not going to see a binding increase until the federal goes to $7.25 unless New Jersey amends theirs and goes to $7.25,” said William Rodgers, a professor of public policy and chief economist at Rutgers University’s Heldrich Center for Workforce Development. “I can see someone in the Legislature after the federal increase is passed say that “we’re ready to raise our state minimum.’ “