On Friday, July 24, 2009 the federal minimum wage will increase from $6.55 to $7.25 per hour. Because a provision in New Jersey’s minimum wage law sets the federal wage as a floor, New Jersey’s minimum wage will also increase on July 24, 2009 – rising by $0.10, from $7.15 to $7.25 per hour.

New Jersey’s minimum wage last increased on October 1, 2006 when it moved from $6.15 to $7.15 per hour. In order for today’s minimum wage to have the same purchasing power that it did in 2006, the state’s wage would need to equal $7.65. In other words, after adjusting for inflation, the $0.10 increase still leaves individuals and families receiving the minimum wage with real earnings below 2006 levels. Currently, fourteen states have minimum wage rates above $7.25, including seven states with an hourly minimum wage at or above $8.00 and five that provide an automatic increase for inflation each year.