The Ridgewood Blog Brings a Free Market Laissez-faire Point of View to Local, New Jersey State and National Issues.
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Trenton NJ, Governor Murphy and Lab or Commissioner Asaro-Angelo have been taking victory laps on New Jersey’s January 1st minimum wage raise :
Continue reading Unintended Consequences of Minimum Wage Increases
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Trenton NJ, The New Jersey Department of Labor and Workforce Development (NJDOL) has advanced its worker misclassification case against Lyft to the courts, asking an administrative law judge to confirm the Department’s assessment that the ride-share company owes $16 million in unemployment, temporary disability and family leave contributions and penalties, as a four-year Department audit found.
Continue reading Worker Misclassification Case Against Lyft Heads to an Administrative Law Judge
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Ridgewood NJ, Assemblyman Gerry Scharfenberger (R-Monmouth) is calling on Governor Murphy and the New Jersey Legislature to put a hold on minimum wage increases scheduled to take place in the coming months as small businesses teeter on the brink of financial ruin due to COVID-19 and subsequent, continual restrictions:
Continue reading Financial Disaster Looms for New Jersey’s Small Businesses
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Paramus NJ, Pier 1 Imports is closing nearly half its 942 stores as consumers increasingly shop online for home goods. Pier 1′s losses have been mounting, as its sales decline. This latest quarter was no exception. Its third-quarter loss widened from a year ago, as same-store sales declined 11.4%.
Continue reading Pier 1 Imports is closing nearly half its 942 stores
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Hasbrouck Heights NJ, Two New Jersey Houlihan’s restaurants abruptly closed their doors Sunday.The Hasbrouck Heights and Woodbridge locations have closed, while eight others remain open.
According to sources the chain plans to keep the other New Jersey locations open. Previously the chain had closed two other restaurants in Weehawken and Lawrenceville blaming high rent and increased operating costs for the closure.
The bar and restaurant chain had filed for bankruptcy in November.
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Trenton NJ, State Senator Michael L. Testa, Jr. expressed concern about the increase in the state’s minimum wage that went into effect on January 1.
The hourly rate will increase to $11 per hour from the current $10, and seasonal workers and employees at businesses with less than six workers will see their pay bump from $8.35 to $10.30.
“This increase comes at a significant risk,” cautioned Testa (R-01). “Higher business expenses will result in higher prices for consumers, but the news can be even worse for employees. Mandatory hikes to minimum wage have been linked to reduced hours and job opportunities for low-skilled workers. The people who least can afford it will be hurt the most.
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Ridgewood NJ, Governor Phil Murphy patted himself on the back for New Jersey’s second statewide minimum wage increase from $10 to $11 per hour, taking effect today, January 1, 2020. The increase is part of a gradual increase in the minimum wage to $15/hour under legislation signed by Governor Murphy in February 2019. When Governor Murphy took office in 2018, the State’s minimum wage was $8.60 per hour.
Perhaps if the governors failed policies of constant tax increases and taxes on everything did not destroy the already morbid New Jersey economy we would celebrating job growth like the rest of the country .
Continue reading The Unintended Consequences of $15 Minimum Wage Increases
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Trenton NJ, New Jersey’s minimum wage law takes effect on July 1, 2019, lifting the earnings of more than one million workers. The goal of the law is to achieve a $15 hourly minimum wage without adversely affecting small and seasonal businesses, so incremental rates were set to give certain employers additional time to comply.
Continue reading New Jersey’s minimum wage law takes effect Today July 1, 2019
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Toms River NJ, News 12 New Jersey is reporting that the mayor of a Jersey Shore community says that paying seasonal workers $15 per hour as minimum wage will hurt the town and drive up prices.While New Jersey’s economically challenged Gov. Phil Murphy signed legislation earlier this year to increase the minimum wage to $15 per hour over the course of the next five years. The governor has said that a higher minimum wage will strengthen the middle class and give security to working families. The reality is middle class families try to send their kids to collage or trade school so they don’t have to work for minimum wage . The minimum wage is for starter jobs and part time jobs raising the bar eliminates those jobs , skills and work ethic that go along with them .
Continue reading Jersey Shore community says that paying seasonal workers $15 per hour as minimum wage will hurt the town and drive up prices
Ridgewood NJ, Ridgewood’s restaurants, the only draw left in the CBD with the digital-led demise of retail are about to be washed over by the same thing that is drowning NYC restaurants.
Now with the money losing garage ($1m/year) on the way bringing higher parking fees for diners and eaters alike, the village and the Dems they elected will not just kill the goose that laid the golden egg, there will be no one left to cook or serve it.
“December 2018 restaurant jobs were down by almost 3,000 (and by 1.64%) from the previous December,” wrote economist Mark Perry, “and the 2.5% annual decline in March 2018 was the worst annual decline since the sharp collapse in restaurant jobs following 9/11 in 2001.”
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Trenton NJ, Senator Declan O’Scanlon (R-Monmouth) today condemned Governor Murphy’s signature of a bill which would rapidly raise the minimum wage to $15 and have widespread negative impacts for New Jersey.
“This law will have disastrous consequences for our business community and minimum wage workers. It simply goes too far too fast,” O’Scanlon stated. “I serve on the bipartisan manufacturing caucus and we heard from every single manufacturer that it was impossible for them to absorb this increase without losing jobs.”
“A hugely important component of this discussion is the effect on our budget. With the fiscal pronouncements that we have made, including the Senate President himself, how can we commit the State to a dramatic impact like the roughly half a billion dollar price tag of this increase? The is inconsistent with the Path to Progress suggestions for lower cost of government. We are digging ourselves deeper into a hole that we already don’t know how to get out of. How can we possibly look our taxpayers in the eye–already the most beleaguered in the nation–no matter how well-intentioned this might be?”
Continue reading Senator Declan O’Scanlon condemns Governor Murphy’s minimum wage bill sighting widespread negative impact on New Jersey
There’s a reason why the vast majority of lottery ticket purchasers are from the lower educated sector of society. They simply don’t understand the economics of the terrible odds. The exact same thing happens with minimum wage laws. They vote for it in the belief that it will somehow make them better off. It actually makes them worse off, just like that stupid lottery ticket.
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Ridgewood NJ, “The democrats (and RINO Republicans) in the New Jersey state legislature have done everything they could to hurt the economy and businesses of New Jersey.
With uncompetitive business taxes and regulations, they now are adding to the dilemma with a $15 minimum wage,” NJ C-GOP president Paul Danielczyk stated.“Businesses are fleeing New Jersey to business-friendly states, and this legislation will add to that exodus, especially hurting small mom and pop businesses who cannot absorb this increase,” Danielczyk said.
Continue reading $15 minimum wage = Layoffs, reduced hours, benefit cuts and automation
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Trenton NJ, In an Op-Ed that appeared in ROI-NJ on Friday, NJBIA President and CEO Michele Siekerka called the agreement announced last week by Gov. Phil Murphy and legislative leadership to raise the minimum wage to $15 as “far from economically responsible.”
Siekerka first notes the cumulative expenses already absorbed by small businesses in New Jersey – including “costly mandates, expensive compliance regulations, more subsidies for energy delivery and increased taxes as a means to balance the state budget. For this, New Jersey ranks dead last for business friendliness before we even get to a $15 minimum wage.”
By Tony Russo, CIANJ President
Ridgewood NJ, There has been a lot of discussion recently on raising the minimum wage to $15 an hour. Governor Murphy would like to see $15 an hour this year but the Legislature introduced a bill which would phase in the increase over several years. The reason given for increasing the minimum wage is the high cost of living in New Jersey.
What is missing from the current discussion are the reasons why New Jersey has such a high cost of living. The major reasons for such a high cost of living are the taxes and fees paid by New Jersey’s residents and businesses. Property taxes, sales taxes, fuel taxes, income taxes, the corporate business tax — New Jersey is a heavily taxed state. Also absent from the discussion is why $15 an hour would somehow make New Jersey affordable.
Government needs to appreciate that most private sector jobs in New Jersey are with small businesses. These business owners take on risks daily as competition is fierce. Most work hard to make ends meet but unfortunately some do not survive.
Employees are a business’ number one resource and keeping good talent is a top priority. An hourly wage is just one part of how a business compensates employees. Many offer fringe benefits including paid time off, healthcare insurance, 401(k) contributions, short- and long-term disability, bonuses and life insurance. When the Legislature focuses on only the hourly rate and not the total compensation paid, it is not reflective of the total amount spent by employers.
More importantly, Trenton lawmakers should not look toward the private sector to make New Jersey affordable but rather look inward to reduce the size of government and make New Jersey a business-friendly State. New investment will create new jobs, more competition and innovation which in turn will improve the quality of life of residents as well as increasing the coffers of the state government. This would reduce the current pressure on New Jersey’s existing businesses.
A government wage mandate on the private sector is the wrong approach and will only lead to higher prices and job losses, ultimately hurting the very people they are trying to help. Finally, New Jersey voters already weighed in on this matter in 2013 when they approved an amendment to the state constitution tying any increases to the minimum wage to the Consumer Price Index or CPI.By Tony Russo, CIANJ President
