NJ Lawmaker’s $25 Minimum Wage Bill Gains Traction In DC

A recently introduced bill that would raise the federal minimum wage for the first time in 17 years is gaining traction in Washington DC.

New Jersey's freshly elected lawmaker, Rep. Analilia Mejia (NJ-11), and Rep. Delia Ramirez (IL-03) co-led the Living Wage for All Act , which would steadily increase the federal minimum wage to $25 an hour.

The bill, after being introduced to the House of Representatives, was recently introduced to the Senate by U.S. Senator Chris Murphy (D-Conn.)

Currently, the federal minimum wage is $7.25 per hour, which has been left unchanged since 2009. In New Jersey, the state minimum wage is $15.92 per hour for most employees, with some seasonal workers and employees of businesses with fewer than six workers getting $15.23 per hour.

Advocates for the bill cite rising costs, inflation, as well as the productivity–pay gap. Studies show that while productivity has increased by more than 92 percent since 1979, wages have only increased by less than 34 percent. Officials added that if the minimum wage had kept pace with inflation and worker productivity since 1968, it would have been roughly $25 in 2023.

Mejia calls the $7.25 per hour wage "outrageous."

"Working families are paying more for just about everything. Inflation is at its highest level in three years, while the costs of housing, groceries, and everyday essentials continue to climb. Yet the federal minimum wage has been frozen since 2009. That is outrageous. If you work full-time, you should be able to afford to live with dignity,” said Mejia. "We need an economy that reflects today's reality, not one stuck nearly two decades in the past... It's time to build an economy that works for all, not just billionaires and corporations.”

This isn’t Mejia’s first time trying to bump minimum wage rates, as she championed for the Garden State’s minimum wage to be increased to $15 per hour in 2024.

Also pushing for the bill is New Jersey Senator Andy Kim, who co-sponsored the legislation.

“A living wage should never be too much for anyone to ask for in this country,” said Kim. “Working families are having to stretch their dollars more while billionaires get the biggest breaks because they write the biggest checks. It’s time we give the American people a real chance at the American Dream; that’s only possible by providing a living wage.”

How It Would Work

According to lawmakers, the bill would require large, highly profitable corporations to lead the transition, reaching $25 per hour by 2031. These larger corporations would be ones with annual gross revenues of $1 billion or more, or have 500 or more employees across the nation.

The timeline for the large employer adjustments would be as follows:

• $12 per hour, beginning in 2026
• $15 per hour, beginning Jan. 1, 2027
• $18 per hour, beginning Jan. 1, 2028
• $20 per hour, beginning Jan. 1, 2029
• $22.50 per hour, beginning Jan. 1, 2030
• $25.00 per hour, beginning Jan. 1, 2031

Smaller employers, any other employer that doesn’t qualify as a large corporation, would phase in the adjustments more gradually, reaching $25 by 2038. See the smaller employer adjustment timeline below:

• $12 per hour, beginning in 2026
• $14 per hour, beginning Jan. 1, 2027
• $16 per hour, beginning Jan. 1, 2028
• $18 per hour, beginning Jan. 1, 2029
• $20 per hour, beginning Jan. 1, 2030
• $20.60 per hour, beginning Jan. 1, 2031
• $21.20 per hour, beginning Jan. 1, 2032
• $21.80 per hour, beginning Jan. 1, 2033
• $22.40 per hour, beginning Jan. 1, 2034
• $23 per hour, beginning Jan. 1, 2035
• $23.60 per hour, beginning Jan. 1, 2036
• $24.20 per hour, beginning Jan. 1, 2037
• $25 per hour, beginning Jan. 1, 2038