$25 minimum wage for fast food workers and teens sought by NJ lawmakers

💲 New Jersey Democrats want to raise the minimum wage to $25 an hour.

🍽️ The bill would end lower-tipped wages and apply to teens.

🗳️ The proposal faces a major fight in Congress.

A new push to raise the minimum wage to $25 an hour for all workers, with no exceptions, has the support of New Jersey Democrats.

The Living Wage for All Act is the first major piece of federal legislation introduced by U.S. Rep. Analilia Mejia, D-N.J., 11th District.

"This bill would transform millions of lives, ensuring working people earn a true living wage instead of being forced to choose between putting food on the table and taking care of their health. Americans deserve an economy that works for all, not just the billionaire class," Mejia said.

Mejia recently won an April 16 special election to fill the seat previously held by fellow Democrat Gov. Mikie Sherrill. U.S. Rep. Bonnie Watson Coleman, D-N.J., 12th District, also showed her support for the bill in Washington, D.C. on Tuesday.

What $25 an hour means for workers in New Jersey

A worker who makes $25 an hour and works 40 hours a week will make $52,000 before taxes. The federal minimum wage has been $7.25 since 2009, though many states have their own wage floors. In New Jersey, the minimum wage is 15.92 per hour.

The LWAA would make this the standard for all workers, including teenagers and people with disabilities and special needs. It would also completely change the service industry, as "subminimum wages" would also be eliminated for tipped workers like waiters.

Such a steep wage hike would be phased in. Larger employers would reach $25 an hour by 2031, while smaller employers would reach the same wage by 2038. The LWAA also includes a "built-in standard" to keep wages going up after the $25 mark is reached.

Opposition to a $25 federal minimum wage

While supporters tout raising the minimum wage as a way to even the playing field, not everyone is on board with a $25 hourly rate for all workers. That includes New Jersey Business & Industry Association President and CEO Michele Siekerka, who says business owners know better than policymakers what they can afford to pay their workers.

"We encourage the free market to do its work, rather than randomly setting a number without any analysis of inflation's impact on business. In particular, this is a time of economic uncertainty and business vulnerability, where profit margins grow slimmer and slimmer due to increased inflation, energy costs and other cost-bearing mandates," said Siekerka.

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According to the NJBIA's 2026 Business Outlook Survey, 77% of surveyed New Jersey business owners and upper-level managers said that business affordability had declined over the past five years. And that's affected their ability to increase wages.

In 2025, only 17% of businesses increased their employees' pay by 5% or more. That's down 17 percentage points, or half, from just two years earlier.

Can the $25 minimum wage bill pass Congress?

Tuesday's proposal resembles previous attempts to raise the federal minimum wage. A bill to raise the wage floor to $17 an hour was introduced this time last year by more than 170 congressional Democrats, including Sen. Bernie Sanders. That bill also included tipped workers, youth workers, and people with disabilities.

However, any substantial federal wage hike faces a steep uphill battle. Democrats would need support from Republicans, including President Donald Trump.

Other democrat lawmakers who attended Tuesday's press conference include Reps. Delia Ramirez, Rashida Tlaib, and Chuy García.

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