Press Release: Tipped Wages Debate Heats Up in New Jersey
TRENTON — New Jersey’s proposed phase-out of the tip credit system for workers has ignited a heated debate among lawmakers, restaurant owners, and candidates in the lead-up to the gubernatorial primaries on June 10. Restaurant owners argue that eliminating the tip credit could jeopardize the industry, while lawmakers consider the implications for workers relying on tips for income.
In early April, extensive public feedback during a legislative hearing indicated strong division on the issue. Prominent candidates have voiced their positions: Steve Sweeney (Democrat) supports raising wages without adversely impacting workers, while Steven Fulop advocates for full minimum wage plus tips. Ras Baraka emphasizes the need for fair wages, especially for marginalized groups. Conversely, Republican candidates like Mario Kranjac argue against the proposal, suggesting it could worsen economic conditions.
Additionally, Democratic representatives Mikie Sherrill and Josh Gottheimer endorse increasing the base wage for tipped workers through the federal Raise the Wage Act of 2025. As New Jersey approaches its primaries, the fate of tipped workers remains uncertain in this contentious discussion.
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