On Thursday, April 10, the Chamber of Commerce Southern New Jersey (CCSNJ) testified before the Assembly State and Local Government Committee on two proposed bills with significant implications on the small business community:

Gradual Elimination of the Tip Credit – A-5433 (Reynolds-Jackson)

CCSNJ Director of Government Affairs Hilary Chebra testified in opposition to A-5433, which seeks to gradually eliminate the tip credit by 2030. While recognizing the bill’s well-meaning intent to protect workers, Ms. Chebra emphasized that current law already mandates that employers make up the difference if an employee’s tips do not meet the minimum wage, ensuring no worker earns below the legal threshold.

Ms. Chebra also voiced serious concerns about the disproportionate impact this legislation would have on South Jersey, a region that relies heavily on the hospitality and tourism industries. She cautioned that the bill could negatively affect the regional workforce and stall ongoing, post-pandemic economic recovery efforts.

The bill was heard for discussion only and did not receive a vote. To read the CCSNJ written testimony on the bill, click here. 

Expansion of the NJ Secure Choice Savings Program – A-5358 (Haider/McCoy/Kane)

CCSNJ also opposed A-5358, which would lower the employee threshold for mandatory participation in the New Jersey Secure Choice Savings Program from 25 employees to one.

The Secure Choice program was signed into law in 2019 and is a mandated state-facilitated retirement plan employers must register for and offer employees or risk penalties. In her testimony, Ms. Chebra highlighted the significant administrative and financial burdens this change would place on the smallest businesses in New Jersey, those often least equipped to handle new regulatory requirements.

Despite the business community's opposition, the bill passed unanimously from committee. To read the CCSNJ written testimony, click here.