SENATE, No. 1233

STATE OF NEW JERSEY

INTRODUCED JUNE 3, 1996

By Senators LESNIAK and BRYANT

An Act concerning wages paid by employers receiving certain public benefits and supplementing P.L.1966, c.113 (C.34:11-56a et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. a. Notwithstanding the provisions of section 5 of P.L.1966, c.113 (C.34:11-56a4) or any other law to the contrary, the minimum wage rate shall be $6.50 per hour for up to 40 hours of working time in any week for each employee of any employer which is in receipt of a public benefit.

    b. Commencing January 1, 1997, the Commissioner of Labor shall annually adjust the hourly wage rate prescribed by subsection a. of this section in direct proportion to any increase or decrease in the Consumer Price Index for all urban consumers in the New York City and the Philadelphia areas, as reported by the United States Department of Labor, except that the hourly wage rate shall not be set at less than $6.50. The adjustment shall become effective on July 1 of each year.

    c. For the purposes of this section, an employer shall be deemed to be "in receipt of a public benefit" while it is performing under any contract awarded by a public entity, receiving any grant or any tax incentive or tax reduction granted by a public entity, or leasing any real property owned by a public entity, and, if a benefit is received for less than six months, for a period of six months beginning on the date the employer first receives any such benefit. 

    As used in this section, "public entity" means the State or any instrumentality or agency of the State or any of its political subdivisions.

    d. Failure to comply with the provisions of subsection a. of this section shall be grounds for discontinuing the public benefit or for denial of a future public benefit.

    e. This act shall be known and may be cited as "The New Jersey Living Wage Act."

    2. This act shall take effect immediately.

STATEMENT

    This bill would establish the "New Jersey Living Wage Act". It provides that the minimum wage shall be $6.50 per hour for each employee of any employer which is in receipt of a public benefit. This hourly rate would be adjusted annually by the Commissioner of Labor to reflect changes in the Consumer Price Index but would not be permitted to fall below $6.50. An employer would be deemed to be "in receipt of a public benefit" while it is performing under any contract awarded by a public entity, receiving any grant or any tax incentive or tax reduction granted by a public entity, or leasing any real property owned by a public entity, and, if a benefit is received for less than six months, for a period of six months beginning on the date the employer first receives any such benefit. "Public entity" is defined by the bill to mean the State or any instrumentality or agency of the State or any of its political subdivisions.

    Published reports indicate that Baltimore, Milwaukee and Santa Clara County, California have enacted living wage ordinances. New York City, New Orleans, Denver, Chicago, Los Angeles and the state of Minnesota are considering similar measures. The purpose of living wage legislation is to assist workers who are employed by businesses which benefit from public funds.

"The New Jersey Living Wage Act"; requires businesses receiving certain public benefits to pay employees at least $6.50 per hour.