Judge to hear 'Living Wage' arguments
By: Lea Kahn, Staff Writer 08/23/2006
Township officials and a citizens group are preparing to square off in Mercer County state Superior Court next week over the legality of a proposed ordinance, which would set a minimum wage for large retailers in Lawrence.
Township officials and a citizens group are preparing to square off in Mercer County state Superior Court next week over the legality of a proposed ordinance, which would set a minimum wage for large retailers in Lawrence.
Superior Court Judge Linda R. Feinberg will listen to the legal arguments presented by Municipal Attorney Kevin Nerwinski and attorney Falk Engel, who represents the Lawrence Living Wage Coalition, at 2 p.m. Aug. 30 in the Mercer County Courthouse, Trenton.
Mr. Nerwinski filed a complaint Tuesday morning asking the court to rule on whether Township Council has the legal authority to adopt the Large Retail Living Wage and Benefits ordinance, which would require it to set a minimum wage for selected businesses.
"We don't want to pass a law that is not valid," he said. "To me, as an attorney, it seems obvious there is a question because what we are saying is that 566 municipalities in New Jersey would have the right to establish a municipal minimum wage limit."
Mr. Engel has said the proposed ordinance is legal and that the township's pursuit of direction through the courts is unnecessary.
Despite comments from the coalition, Mr. Nerwinski also filed a motion for a temporary restraining order to prevent the citizens group from taking any further action before the Sept. 8 deadline to place the proposed ordinance on the Nov. 7 ballot.
"It is not a fight or conflict between the township and the petitioners (Living Wage Coalition)," Mr. Nerwinski said. "From the township's perspective, the only thing we are trying to do is to confirm whether the township has the authority to enact what has been proposed by the petitioners."
It was unclear whether the judge would render an immediate verdict or choose to make a decision on the matter at a later date.
The proposed ordinance would apply to retailers whose parent companies gross annual revenues of $1 billion or more, and operate stores in Lawrence in excess of 100,000 square feet. It would require retailers to pay employees a living wage of at least $11.08 per hour, plus a benefits rate of no less than $3.50 per hour, with subsequent cost-of-living adjustments for both rates.
Under those conditions, the ordinance would apply to Wal-Mart, which wants to build a 149,233-square-foot store at 1060 and 1100 Spruce St.
The state minimum wage is $6.15 per hour and is expected to rise to $7.15 in October. The average hourly wage for full-time Wal-Mart employees in the New Jersey area is $10.49, according to the company's Web site, www.waltmart-facts.com.
Township Council tabled action on the proposed ordinance at its Aug. 15 meeting on Mr. Nerwinski's advice. The ordinance was presented to Township Council after the citizens group gathered 1,048 signatures on a petition in support of it.
Currently, the council's lack of action on the proposed ordinance would mean it will go directly to the voters. The township must forward the ordinance to the Mercer County Clerk's Office by Sept. 8 so it can be placed on the Nov. 7 ballot.
Edith Pike, one of the citizens who initiated the petition, called Township Council's actions "shameful." She said the council and Mr. Nerwinski seem more interested in representing major corporate interests than the interests of retail workers "struggling to make ends meet."
"While Township Council members have tried to pass off their concerns as trying to protect Lawrence taxpayers from the expense of litigation by big box stores, they have clearly shown this to be disingenuous," Ms. Pike said in a press release from the coalition. "We now have a situation where the township is initiating litigation and incurring unnecessary legal expenses to try to stop a completely legal, voter-led initiative and referendum."
Mr. Engel dismissed the township's fears that retailers would challenge the ordinance. Though he said the circumstances are different, Mr. Engel pointed to a successful 2005 lawsuit in Hudson County that allowed for a county living wage ordinance there.
"Township Council's position is not all that credible that the township would be harmed because employers could sue the township," he said. "First of all, the election is Nov. 7 and we don't know if the ordinance will pass or not. Even if it is enacted, it won't take effect for 120 days — six months."
More than 100 municipalities nationwide have adopted minimum wage ordinances, which have been upheld by state courts in every state, Mr. Engel said.