New Jersey-2018-S3607-Introduced

An Act concerning increases in minimum wage and supplementing Title 52 of the Revised Statutes.

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

1. a. On or before July 28, 2019, and on or before every July 28 thereafter until the minimum wage is $15.00 per hour pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, conditions can support a minimum wage increase, the State Treasurer shall annually make a determination and certify to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), the Legislature whether each of the following conditions is met:

(1) Total nonfarm employment for the State, seasonally adjusted, decreased over the three-month period from April to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in March, as reported by the Department of Labor and Workforce Development.

(2) Total nonfarm employment for the State, seasonally adjusted, decreased over the six-month period from January to June, inclusive, prior to the July 28 determination. This calculation shall compare seasonally adjusted total nonfarm employment in June to seasonally adjusted total nonfarm employment in December, as reported by the Department of Labor and Workforce Development.

(3) Retail sales and use tax cash receipts for the State fiscal year ending one month prior to the July 28 determination is less than retail sales and use tax cash receipts from for the State fiscal year, ending 13 months prior to the July 28 determination. The calculation for the condition specified in this paragraph shall be made as follows:

(a) The Division of Taxation shall publish by the 10th of each month on its Internet website the total retail sales (sales before adjustments) for the prior month derived from its daily retail sales and use tax reports.

(b) The Division of Taxation shall publish by the 10th of each month on its Internet website the monthly factor required to convert the prior month's retail sales and use tax total from all tax rates to a retail sales and use tax total.

(c) The Department of the Treasury shall multiply the monthly total from subparagraph (a) of this paragraph (3) by the monthly factor from subparagraph (b) of this paragraph (3) for each month.

(d) The Department of the Treasury shall sum the monthly totals calculated in subparagraph (c) of this paragraph (3) to calculate the 12-month July 1 to June 30, inclusive, totals needed for the comparison in this subparagraph.

b. On or before July 28, 2019, and on or before every July 28 thereafter until the minimum wage is $15.00 per hour pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, to ensure that the State General Fund fiscal condition can support the next scheduled minimum wage increase, the State Treasurer shall annually make a determination and certify to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C52:14-91.1), the Legislature whether total revenues received by the State each fiscal year have decreased by at least two percent from the preceding fiscal year.

For purposes of this subsection, a decrease in revenues that is the result of a change in tax policy or law shall not be considered as a decrease in revenues with respect to any impact the change in minimum wage has on revenue collection.

c. (1) If, for any year, the condition in either paragraph (1) or (2) of subsection a. of this section is met, and if the condition in paragraph (3) of subsection a. is met, then the minimum wage increases scheduled pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, for the following year shall be suspended.

If the scheduled minimum wage increases are suspended pursuant to this paragraph for the following year, all dates specified in section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, shall be postponed by an additional year.

(2) If the State Treasurer certifies under subsection b. of this section that total revenues received by the State in a fiscal year have decreased by at least two percent from the preceding fiscal year, the minimum wage increases scheduled pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, for the following year shall be suspended.

If the scheduled minimum wage increases are suspended pursuant to this paragraph (2) for the following year, the suspension shall remain in effect until such time as the total revenues received by the State reach the level of revenues prior to the two percent decrease in revenues. When the suspension is lifted, all dates specified in section 5 of P.L.1966, c.113 (C.34:11-56a4) as amended by P.L.2019, c.32, shall be postponed by the number of years the suspension was in effect.

2. This act shall take effect immediately.

STATEMENT

This bill provides two mechanisms by which the minimum wage increases scheduled in recently enacted legislation, P.L.2019, c.32, would be suspended for economic reasons.

Under the bill, the scheduled minimum wage increases would be suspended based on certain decreases in employment, seasonally adjusted, and decreases in retail sales and use tax cash receipts. The State Treasurer is required to certify these conditions to the Governor and the Legislature, and upon the Treasurer's certification, the scheduled minimum wage increases would be suspended for one year. If the scheduled minimum wage increases are suspended due to the specified decreases in employment and retail sales and use tax cash receipts, the dates to increase the minimum wage in the aforementioned pending legislation would be postponed by an additional year.

Additionally, under the bill, the scheduled minimum wage increases would be suspended if total revenues received by the State in a fiscal year have decreased by at least two percent from the preceding fiscal year. For purposes of this calculation, a decrease in revenues that is the result in a change in tax policy or law would not be considered as a decrease in revenues with respect to any impact the change in minimum wage has on revenue collection.

The State Treasurer is required to certify this decrease in revenues to the Governor and the Legislature, and upon the Treasurer's certification, the scheduled minimum wage increases would be suspended.

If the scheduled minimum wage increases are suspended due to a two percent decrease in revenues, the suspension would remain in effect until such time as the total revenues received by the State reach the level of revenues prior to the two percent decrease in revenues. When the suspension is lifted, all dates specified in the aforementioned legislation would be postponed by the number of years the suspension was in effect.