Prohibits payment of subminimum wage due to age, disability, injury, or status as apprentice, learner, or student through special license issued by DOLWD.

2026-2027 Regular Session Introduced by Shirley Turner and 1 co-sponsor

Prohibits subminimum wages by abolishing licenses for such pay and requires all workers to receive at least the New Jersey minimum wage.

Introduced in the Senate, Referred to Senate Labor Committee

Summary of Bill S2172 (New Jersey, 2026-2027 Regular Session)

Purpose and intent

Prohibits the payment of subminimum wages to individuals based on age, disability, injury, or status as an apprentice, learner, or student.

Repeals the authority that previously issued special licenses/certificates allowing subminimum wage employment under the New Jersey Department of Labor and Workforce Development (DOLWD) Wage and Hour Division.

Aims to promote economic justice and pay parity by ensuring all workers receive at least the state minimum wage, regardless of the worker’s status or condition.

Key provisions and changes

Abolishes subminimum wage through special licenses: Employers would no longer be allowed to employ individuals at wages below the New Jersey minimum wage under a special permit or license.

Repeals governing law: The statute authorizing special certificates/licenses for employment of individuals due to age, disability, injury, or status as apprentice/learner/student at subminimum wages would be repealed.

Conforming changes: Updates to existing laws that referenced these special licenses (including any related provisions such as tax credits for employing individuals in extended employment programs at sheltered workshops) to reflect the elimination of subminimum wage employment.

Elimination of sheltered/workshop-related subminimum wage pathways: By removing the licenses and associated references, the bill reduces or ends subminimum wage opportunities tied to sheltered workshops or similar programs.

Who and what would be affected

Workers: Individuals who might have been paid subminimum wages due to age, disability, injury, or status as an apprentice, learner, or student.

Employers: Businesses and non-profit providers that previously relied on subminimum wage arrangements under the special licenses issued by DOLWD.

Sheltered workshops and similar programs: Programs that employed workers at subminimum wages under special licenses would be affected by the removal of the legal pathway to pay subminimum wages.

State agencies: DOLWD’s Wage and Hour Division would no longer issue or enforce licenses for subminimum wage employment, and would adjust enforcement and compliance accordingly.

Procedural and timeline aspects

Status: Introduced in the Senate on January 13, 2026; referred to the Senate Labor Committee.

Companion bills: Noted as having three companion bills (indicating parallel or related proposals in other chambers or contexts).

Next steps: If advanced, the bill would move through committee hearings, potential amendments, and floor votes in the Senate, and subsequently to the Assembly (and potentially to the governor for signature) in the 2026-2027 session.

Practical impact and considerations

Economic justice focus: The bill emphasizes ensuring workers are paid at least the minimum wage, removing a mechanism that allowed subminimum wages for specified groups.

Transition considerations: Employers and programs that relied on subminimum wage arrangements would need to transition to paying at least the minimum wage, with potential implications for budgeting and program design.

Compliance and enforcement: Clear guidance would be needed on how existing contracts, tax credits, and reporting mechanisms (related to sheltered employment and wage subsidies) are adjusted post-enactment.

Note: This summary reflects the provisions as described in the bill’s text and sponsors' statements. If enacted, the bill would require implementing regulations and potential amendments to related tax and employment laws.