Bill Text: NJ S4237 | 2022-2023 | Regular Session | Introduced
Bill Title: Prohibits payment of subminimum wage due to age, disability, injury, or status as apprentice, learner, or student through special license issued by DOLWD.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-12-14 - Introduced in the Senate, Referred to Senate Labor Committee [S4237 Detail]
Download: New_Jersey-2022-S4237-Introduced.html
Sponsored by:
Senator ANDREW ZWICKER
District 16 (Hunterdon, Mercer, Middlesex and Somerset)
SYNOPSIS
Prohibits payment of subminimum wage due to age, disability, injury, or status as apprentice, learner, or student through special license issued by DOLWD.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning payment of subminimum wage, revising various parts of the statutory law, 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. (New section) The Legislature finds and declares that:
a. New Jersey raised its minimum wage in 2018 because every worker deserves a fair day's pay for a fair day's work.
b. The elimination of subminimum wages is essential to promote economic justice and pay parity for all, notwithstanding age, disability, injury, or status as an apprentice, learner, or student.
c. New Jersey law currently authorizes employers to pay persons less than the State minimum wage due to age, disability, injury, or status as an apprentice, learner, or student upon the receipt of a special permit from the New Jersey Department of Labor and Workforce Development's Wage and Hour Division.
d. According to the findings made by the United States Commission on Civil Rights in September 2020, it has been repeatedly found that, in particular, persons with disabilities working under a special permit are limited from realizing their full potential while allowing providers and businesses to profit from their labor.
e. There are a growing number of states that now recognize that the payment of subminimum wages is a discriminatory practice and have thus imposed a ban on their use.
f. Therefore, beginning with the effective date of this act, employers are prohibited from paying subminimum wages to individuals due to age, disability, injury, or status as an apprentice, learner, or student through the issuance of a special license from the New Jersey Department of Labor and Workforce Development's Wage and Hour Division.
2. Section 1 of P.L.1987, c.455 (C.34:16-51) is amended to read as follows:
1. The Legislature finds and declares that many [handicapped citizens] persons with disabilities enrolled in [sheltered (] extended [)] employment programs at sheltered workshops [earn subminimum wages in a noncompetitive working environment and therefore] require financial assistance so that they may meet their transportation costs.
The Legislature further finds and declares that the Department of Labor and Workforce Development through its Division of Vocational Rehabilitation Services, in conjunction with the Division of Developmental Disabilities in the Department of Human Services and the sheltered workshops of this State, should play a major role in defraying the costs of [public] transportation and paratransit expenses of [handicapped citizens] persons with disabilities enrolled in [sheltered (] extended [)] employment programs at sheltered workshops.
(cf: P.L.1987, c.455, s.1)
3. Section 1 of P.L.2005, c.318 (C.54:10A-5.38) is amended to read as follows:
1. a. A taxpayer shall be allowed a credit against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), in an amount equal to 20% of the salary and wages paid by the taxpayer during the privilege period for the employment of a qualified person, but not to exceed $1,000 for each qualified person for the privilege period.
b. As used in this section:
"Qualified person" means an extended employee, within the meaning of that term as set forth in section 2 of P.L.1971, c.272 (C.34:16-40) [, to whom the Commissioner of Labor and Workforce Development, under subsection (b) of section 18 of P.L.1966, c.113 (C.34:11-56a17), shall have issued a special license authorizing employment at wages less than the minimum wage rate,] and who, for at least 26 weeks during the privilege period, shall have performed at least 25 hours per week of work at or under the supervision of a sheltered workshop pursuant to a contract between the taxpayer and the sheltered workshop.
"Sheltered workshop" means an occupation-oriented facility operated by a nonprofit agency with which the Division of Vocational Rehabilitation Services in the Department of Labor and Workforce Development shall have entered into a contract under section 4 of P.L.1971, c.272 (C.34:16-42) to furnish extended employment programs to eligible individuals.
c. The amount of the credit applied under this section against the tax imposed pursuant to section 5 of P.L.1945, c.162 (C.54:10A-5), for a privilege period, when taken together with any other credits allowed against the tax imposed pursuant to section 5 of P.L.1945, c.162, shall not exceed 50% of the tax liability otherwise due and shall not reduce the tax liability to an amount less than the statutory minimum provided in subsection (e) of section 5 of P.L.1945, c.162. The priority in which credits allowed pursuant to this section and any other credits shall be taken shall be determined by the Director of the Division of Taxation. The amount of the credit otherwise allowable under this section which cannot be applied for the privilege period due to the limitations of this subsection or under other provisions of P.L.1945, c.162 may be carried over, if necessary, to the seven privilege periods following the privilege period for which the credit was allowed.
(cf: P.L.2005, c.318, s.1)
4. Section 2 of P.L.2005, c.318 (C.54A:4-11) is amended to read as follows:
2. a. A taxpayer shall be allowed a credit against the tax otherwise due for the taxable year under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., in an amount equal to 20% of the salary and wages paid by the taxpayer during the taxable year for the employment of a qualified person during the taxable year but not to exceed $1,000 for each qualified person for the taxable year.
b. As used in this section:
"Qualified person" means an extended employee, within the meaning of that term as set forth in section 2 of P.L.1971, c.272 (C.34:16-40) [, to whom the Commissioner of the Department of Labor and Workforce Development, under subsection (b) of section 18 of P.L.1966, c.113 (C.34:11-56a17), shall have issued a special license authorizing employment at wages less than the minimum wage rate,] and who, for at least 26 weeks during the taxable year, shall have performed at least 25 hours per week of work at or under the supervision of a sheltered workshop pursuant to a contract between the taxpayer and the sheltered workshop.
"Sheltered workshop" means an occupation-oriented facility operated by a non-profit agency with which the Division of Vocational Rehabilitation Services in the New Jersey Department of Labor and Workforce Development shall have entered into a contract under section 4 of P.L.1971, c.272 (C.34:16-42) to furnish extended employment programs to eligible individuals.
c. The amount of the credits applied under this section for a taxable year, when taken together with any other credits allowed against the tax imposed pursuant to N.J.S.54A:1-1 et seq., shall not exceed 50% of the taxpayer's liability for tax for the taxable year that bears the same proportional relationship to the total amount of such liability as the amount of the taxpayer's gross income, derived from New Jersey sources and attributable to the business or professional activity in which the taxpayer employs the qualified person during that taxable year, bears to the taxpayer's entire gross income for that year. Credits allowed pursuant to this section shall be taken only after the taxpayer has taken all credits allowed under section 2 of P.L.2000, c.80 (C.54A:4-7). The amount of the credit otherwise allowable under this section which cannot be applied for the taxable year due to the limitations of this subsection may be carried over, if necessary to the seven taxable years following the taxable year for which the credit was allowed.
d. A partnership shall not be allowed a credit under this section directly, but the amount of credit of a taxpayer in respect of a distributive share of partnership income under the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1 et seq., shall be determined by allocating to the taxpayer that proportion of the credit acquired by the partnership that is equal to the taxpayer's share, whether or not distributed, of the total distributive income or gain of the partnership for its taxable year ending within or with the taxpayer's taxable year.
(cf: P.L.2005, c.318, s.2)
5. Section 18 of P.L.1966, c.113 (C.34:11-56a17) is repealed.
6. This act shall take effect July 1, 2024.
STATEMENT
This bill prohibits the payment of subminimum wages to individuals due to age, disability, injury, or status as an apprentice, learner, or student through the issuance of a special license from the New Jersey Department of Labor and Workforce Development's Wage and Hour Division. It is the view of the sponsor that the elimination of subminimum wages is essential to promote economic justice and pay parity for all. In particular, persons with disabilities working under a special permit are limited from realizing their full potential while allowing providers and businesses to profit from their labor. This bill repeals the law establishing special certificates or licenses for the employment of individuals due to age, disability, injury, or status as an apprentice, learner, or student at wages lower than the minimum wage.
