| Photo by Kenny Eliason on Unsplash
NEW YORK —Beginning January 1, 2025, the minimum wage per hour in New York, New Jersey, and Connecticut will increase based on each state’s legislation, constitutional requirements, and other factors.
The increase is from $15.50 to $16.50 per hour in New York City, Long Island, and Westchester. For the rest of New York, it will rise to $15.50 per hour as part of a multi-year agreement between Gov. Kathy Hochul and the New York State Legislature to index the minimum wage to inflation.
“Putting money back in your pockets has been the focus of my first three Budgets, and that includes increasing the minimum wage for the lowest earners across the state,” said Hochul. “With rising costs of living, this increase will help to lighten the burdens of inflation for New Yorkers while providing businesses with the time needed to adjust.”
The minimum wage is scheduled to increase by another $0.50 in 2026 and then increase annually starting in 2027 at a rate determined by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for the Northeast Region.
“In this current era of inflation and rising costs, every cent counts for all New Yorkers, especially workers who earn minimum wage,” said NYS Department of Labor Commissioner Roberta Reardon. “By gradually increasing wages for the lowest earners, we are ensuring businesses can adjust to the change while also helping more families make ends meet.”
New Yorkers earning minimum wage who do not see the increase reflected in their paychecks should file a wage complaint online or call 833-910-4378.
New Jersey
Meanwhile, the statewide minimum wage in New Jersey will increase by $0.36 to $15.49 per hour for most employees, effective January 1, 2025.
The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.
When Governor Murphy took office in 2018, the state’s minimum wage was $8.60 per hour. The legislature identified this as a priority, which resulted in the gradual increase of the state’s minimum hourly wage to $15.12 on January 1, 2024, for most employees. The governor signed the legislation in February 2019.
“Aligning the state minimum wage with any increases in the cost of living is a critical step towards economic fairness and security for all New Jersey workers,” said Labor Commissioner Robert Asaro-Angelo. “This adjustment fosters a more equitable economy and ensures our workforce can continue to thrive.”
Under the law, the minimum wage rate for seasonal and small employers and employees will continue to increase gradually until 2028 to lessen the impact on those businesses. The minimum hourly wage for these employees will increase to $14.53 on January 1, up from $13.73.
Agricultural workers are guided by a separate minimum wage timetable under the law, and their minimum wage rate will continue to increase incrementally until 2030. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $13.40, up from $12.81. Additionally, long-term care facility direct care staff will increase their minimum hourly wage by $0.36 to $18.49.
Once the annual statutory increases in the minimum wage rate are completed for employees of small and seasonal employers (in 2028) and those who work on a farm for an hourly or piece-rate wage (in 2030), those minimum hourly wage rates will continue to increase annually, along with the minimum hourly wage rate for other employees, under Article 1, Paragraph 23, of the New Jersey Constitution, which requires that the minimum hourly wage rate be adjusted annually based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.
Connecticut
Connecticut also announced that beginning on January 1, 2025, the minimum wage will increase from $15.60 to $16.35 per hour.
Gov. Ned Lamont signed a state law in 2019 that links the minimum wage to economic indicators, specifically the percentage change in the federal employment cost index. Under the law, the minimum wage must be adjusted each year based on the U.S. Department of Labor’s calculation of the employment cost index for the twelve months ending on June 30 of the preceding year.
The Connecticut Department of Labor commissioner must review this percentage change and announce any necessary adjustments by October 15 of each year. Those adjustments must take effect on January 1 of the following year.
“This law that we enacted ensures that as the economy grows, the wages of low-income workers can grow with it,” Lamont said. “This is a fair, modest adjustment for workers who will invest their earnings right back into our economy and support local businesses in their communities.”
According to the Current Population Survey, calculated by the U.S. Census Bureau and the U.S. Bureau of Labor Statistics, approximately 60% of minimum wage earners in Connecticut are women.
Continuing forward under this law, Connecticut workers and employers can anticipate that announcements will be made by October 15 of each year declaring the change in the minimum wage that will become effective on January 1 of the approaching year.
Connecticut Labor Commissioner Danté Bartolomeo reports that the employment cost index increased by 4.2% over the twelve months ending on June 30, 2024, accounting for a $0.66 increase to the state’s minimum wage effective January 1, 2025.
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