The New Jersey Business and Industry Association president Michele Siekerka raised questions on May 8 about the impact of proposed federal legislation to raise the minimum wage to $25 an hour for all workers.
The discussion follows the introduction of the Living Wage for All Act by U.S. Representative Analilia Mejia, which has renewed debate about how mandated wage increases might affect businesses and employees. The topic is important as it addresses not only entry-level pay but also broader economic implications for employers and various workforce sectors.
“We’re talking about entry-level positions,” Michele Siekerka told host Eric Scott on his Jersey Thing show on NJ101.5 this week. “The idea of an entry-level job is you get in, you increase your skills and your time in the position, and you rise, and you promote.”
“When you build your skills, you build your income. That’s a known fact. Entry-level positions are there for a reason: To get people in the door. And then we need to grow workers up organically.”
Siekerka said another way wages grow is through supply and demand, noting that during pandemic-related workforce shortages many employers raised wages above $15 an hour before state mandates required it at the start of 2024. She also said that “employers historically ‘pay what they can afford,’ in order to be competitive.” In NJBIA’s 2026 Business Outlook Survey, 77% of surveyed New Jersey business owners and upper-level managers said business affordability had declined over five years, affecting their ability to increase wages; only 17% increased employee pay by at least five percent in 2025—a drop from previous years.
Siekerka added that raising minimum wages can lead to upward wage compression across staff levels: “So now, what was before the $26-an-hour job is going to become a $30-an-hour job for that person. And that just pushes all the way up the line.” She also expressed concern about operating budgets at childcare or eldercare facilities if labor costs rise sharply.
“Another critical thing we need to keep in mind is the tourism industry here in the state of New Jersey,” Siekerka said regarding seasonal work and teen employment exemptions under such proposals.
Previous efforts like Senator Bernie Sanders’ Raise the Wage Act—which sought a $17 hourly minimum—have not advanced through Congress recently.
The New Jersey Business and Industry Association serves as one of nation’s largest statewide employer associations representing private-sector employers throughout New Jersey; it offers advocacy services, information resources, cost-saving benefits, fosters partnerships among businesses, government entities and academic institutions while advancing its members’ financial success according to its official website.
