Client Alert
Contact:
Steven B. Harz, Esq., Chairman
Labor & Employment Law Group
201-342-6000
July 30, 2009

FEDERAL ISSUES NEW WAGE RULES.

Dear Clients and Friends:

FEDERAL ISSUES NEW WAGE RULES.

Dear Clients and Friends:

On July 24, 2009, the Federal minimum wage, as well as the minimum wage in the State of New Jersey, increased from $7.15 an hour to $7.25 an hour. To coincide with the minimum wage increase, the State of New Jersey Department of Labor and Workforce Development (the “LWD”) published new allowance rates. These new rates, which the LWD advises will soon be codified in the New Jersey Administrative Code, are considered official LWD policy and must be adhered to by employers in New Jersey effective immediately. The following is a brief guide to the new rates:

* * *

First, the Uniform Maintenance Rate has changed. Where an employer that requires its employees to wear uniforms does not launder or maintain its employees’ uniforms, the employer must pay its employees, in addition to the minimum wage:

- $9.00 per week if an employee works over 30 hours;
- $7.10 per week if an employee works over 20 hours, but not more than 30 hours;
- $4.30 per week if an employee works 20 hours or less.

Second, employers should be aware that, for an employee to be considered exempt from the minimum wage rules pursuant to the executive or administration exemptions, the employee must be paid a minimum weekly salary of $543.75. The law regarding exemptions can be quite complicated. As such, employers with questions in that area should consult legal counsel.