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Committee hears hours of testimony on proposal to eliminate tipped wage; bill A5433 remains for discussion only
Summary
On a day of extensive testimony, the committee heard arguments for and against A5433, a bill to phase out the tipped-wage credit and raise the minimum wage for tipped workers; the matter was set for discussion only with no committee vote.
The Assembly committee held a long discussion of A5433, a proposal to phase out the tipped-wage credit and increase the minimum wage for tipped workers. The chair emphasized the hearing was for discussion only and that no vote would be taken that day.
Proponents argued the tipped-wage system is outdated and contributes to wage disparities. Peter Chen (New Jersey Policy Perspective) said the United States is “the only country in the world that has a different minimum wage for tipped workers” and described the system’s origins in post–Civil War labor arrangements. Chen testified states that…
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