For a bid rate, check the applicable wage floor, training eligibility and hour limit before using a reduced entry rate.
Key takeaways
- Check New Jersey's base rate and its effective date before pricing work.
- Confirm the training program and the new hire's previous experience before using a reduced rate.
- Check that a full-time student's employer is the college or university where the student is enrolled.
- Separate long-term care direct care staff from other roles on the labor sheet.
- Write each entry rate's state, effective date and source beside it.
A training wage line needs more than a percentage: record the employee's training program and previous experience, then track eligible hours from hiring. Keep those details beside the rate so a reviewer can check eligibility before accepting the reduced figure. Each state's floor and its effective dates should be confirmed before one entry rate is used.
Why entry-level rates need a source
An entry-level rate is the number a crew is paid for its first hours on a job, so each figure in that rate needs a source you can name and date. The article below covers four limits drawn from state sources: New Jersey's training wage, eligible training hours, student rate, and long-term care minimum. Maine, Alaska and Nevada add wage calculations and pay-timing figures that belong on the same labor sheet.
The figures in this article are minimum wage floors and training wage limits. None of them is a prevailing wage rate, so a bid that depends on prevailing wages needs its own lookup. A source column should sit beside each entry rate on your labor sheet. The state, the effective date and the page the figure came from belong in that column, so a later reviewer can trace the number without repeating the search. For a broader method on choosing a wage for a bid, read construction wage selection.
New Jersey minimum wage and wage orders
New Jersey's minimum wage is $16.48 an hour for most workers beginning January 1, 2027, according to New Jersey Department of Labor and Workforce Development. Because the figure starts on that date, the bid date and the dates of the work both matter. A rate typed into a labor sheet without its start date can look current when it is not yet in effect, so the start date belongs on the same line as the figure.
A wage order can require more than the minimum. If an applicable wage order has been issued by the commissioner under section 17 (C.34:11-56a16) of this act, the employer shall also pay not less than the wages prescribed in said order, according to New Jersey Department of Labor and Workforce Development. The wage order is a separate test from the base minimum, so a rate that clears the base figure can still fall short of the order.
A labor sheet should show a wage order rate as its own line when one applies, so the order can be compared with the base figure in the same column. For public work, the related guide public bid pricing: wage provisions to check is a sensible place to start reading the provisions that apply to a solicitation. Keep the base minimum and the order rate in separate rows, because a mixed figure hides which one drove the price.
Training wage: 90 percent and 120 hours
The state's training wage rule permits payment of a training wage of not less than 90 percent of the minimum wage rate, for an employee enrolled in an established employer on-the-job or other training program that meets standards set by regulations adopted by the commissioner, according to New Jersey Department of Labor and Workforce Development. The program standard is part of the rule, so a training wage line should name the program it relies on.
The period for paying the training wage covers the first 120 working hours after hiring, in an occupation where the employee has no previous similar or related experience, according to New Jersey Department of Labor and Workforce Development. The experience test matters on a crew with mixed backgrounds, because a worker with related experience falls outside the quoted period.
On the labor sheet, a new hire's training hours belong in their own row, counted from the hire date. When the counted hours pass 120, the row should move to the rate that applies after the training period. Hours past the training period are a separate costing question, and the guide construction overtime cost covers the inputs for that calculation.
The 90 percent figure belongs to New Jersey. A bid in another state needs that state's own training rule, and the New Jersey percentage should not be carried across as a default. A crew with some new hires and some experienced workers should carry two separate rate lines, one for the training period and one for the full rate, so the difference stays visible during review.
Student rate at 85 percent
The student provision allows full-time students to be employed by the college or university at which they are enrolled at not less than 85 percent of the effective applicable minimum wage rate, according to New Jersey Department of Labor and Workforce Development. The rule ties the figure to the employer, so the enrolled college or university must be the one paying the student.
A student who works for a different employer falls outside the quoted text. That worker should be priced on the general rate line, not on the 85 percent line. Enrollment status should be recorded in the hire file so the rate line can be supported if a bid is reviewed later. The student line should also sit on its own row, away from crew rates, so that the reduced figure is easy to spot.
The 85 percent is a share of the effective applicable minimum wage rate, not a fixed dollar amount. The base figure on the labor sheet therefore has to be the rate in effect for the work period. A sheet that stores a single number for the whole job can mislead an estimator once the start date of a new rate falls inside the job.
Long-term care $3 higher floor
The rule for long-term care facilities begins with a date: effective on the first day of the second month next following the effective date of P.L.2020, c.89, the minimum wage for long-term care facility direct care staff members shall be in an amount that is $3 higher than the prevailing minimum wage established pursuant to subsection a. of this section, according to New Jersey Department of Labor and Workforce Development. Confirm the effective date on the state page before the figure is used on a bid.
The figure is a difference above the prevailing minimum wage, so the labor sheet should store the base figure and the $3 difference on separate lines. A single combined number hides the base figure, which changes when the state minimum changes. The base line can be checked against the state page, and the difference line can be checked against the rule quoted above.
The rule covers direct care staff members in long-term care facilities. A row for another role or another type of facility should be labeled as outside this rule, so the $3 difference is not applied by habit. An estimator who prices a mixed crew should split the staff into direct care and other roles before applying any long-term care figure.
Keep the long-term care line visibly tied to the facility type named in the rule. A reviewer reading the labor sheet should be able to see which staff members the higher floor covers and which base figure it sits above.
Maine wage schedule, Alaska calculation and Nevada pay timing
The Maine schedule lists a minimum hourly wage of $9.00 per hour starting January 1, 2017, rising to $12.00 per hour starting January 1, 2020, according to Maine Legislature. The $12.00 figure is a step in that schedule starting January 1, 2020. A current Maine figure needs to be read from the source on the day the bid is priced.
Maine's rule also follows federal changes. If the highest federal minimum wage is increased in excess of the minimum wage in effect under this section, the minimum wage under this section is increased to the same amount, effective on the same date as the increase in the federal minimum wage, according to Maine Legislature. A labor sheet for Maine work should carry a note that the state figure can move with a federal increase.
Alaska's Wage and Hour FAQ includes a calculation sentence: "This is calculated by multiplying all hours worked in the pay period by $13.00," according to Alaska Department of Labor and Workforce Development. Use the $13.00 figure only when discussing that calculation. An Alaska entry rate should be taken from the state's current figure, with the example kept out of the labor sheet.
Nevada's pay timing is a separate limit. Nevada law requires employers to pay their employees at least twice a month (NRS 608.060), according to Nevada Office of the Labor Commissioner. For Nevada work, the pay schedule on the labor sheet should reflect that requirement, and the cash timing should be checked before the job starts.
Illustrative example: tracking training hours
An eligible new hire works 40 hours, then another 40 hours, then another 40 hours. The running total reaches 120 hours. Keep those hours together on the training line so the reviewer can see when that period ends. Before pricing later hours, check the applicable full rate and effective date, then place those hours on the separate rate line. This example tracks hours only; it does not calculate a dollar wage or establish eligibility. The program and experience checks still come before the reduced rate is used, and the source belongs beside the rate.
Your next step is to check the current floor in each state you bid and flag any rate below it in your labor sheet.
Training wage questions
What is New Jersey's training wage percentage?
It is at least 90 percent of the applicable minimum wage, subject to the training program requirements described above. Confirm the program before using the reduced rate.
How many hours can the training wage be paid?
It has a limit of 120 working hours after hiring, subject to the employee's previous experience. Track actual hours on the training line rather than treating the limit as a calendar period.
What is the New Jersey rate for full-time students?
It is at least 85 percent of the effective applicable minimum wage for qualifying college or university employment. Check both enrollment and employer before choosing the student line.
Does Maine's minimum follow federal increases?
Yes, a qualifying federal increase changes Maine's minimum. Check the effective date before updating the labor sheet.