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NJRHA Preserves Industry Stability as Legislative Session Winds Down

NJRHA’s sustained advocacy throughout the current legislative session helped preserve industry stability by protecting the tip wage, maintaining operational flexibility, and preventing costly, unworkable proposals from advancing.

 

As the session concludes next week, this recap looks back at the Association’s work behind the scenes to protect your business and preserve stability across the industry.

 

LEARN MORE:

Save the date: January 27th - NJRHA Virtual Town Hall (Year in Review)

Preserved Tip Wage

• Lawmakers introduced a proposal last spring that would have eliminated the tip wage by 2030. The bill was scheduled for a committee vote with less than one week’s notice.

   

• Following NJRHA engagement, lawmakers agreed to hold a hearing only, rather than advance the bill for a vote.

   

• NJRHA mobilized more than 150 tipped wage employees and employers to testify before the committee. As a result of the turnout and testimony, the legislation did not advance.

   

• NJRHA proactively commissioned a statewide survey of nearly 400 tipped workers. Survey results - showing overwhelming support for the current system - were distributed to all 120 legislators and their staff.

   

• NJRHA continues to educate policymakers, employers, and employees on the real-world impacts this proposal would have on the industry.

Prevented Heat Stress Mandates

• Lawmakers considered a proposal this session that would have mandated heat stress regulations across nearly all industries.

   

• For restaurants, the bill would have required non-essential work to stop if kitchen temperatures exceeded 85 degrees.

   

• NJRHA testified multiple times, emphasizing that a one-size-fits-all approach would be unworkable for restaurant operations.

   

• NJRHA shared industry workplace injury data showing that heat-related injuries are not prevalent across the restaurant sector.

   

• The legislation did not advance beyond committee.

Secured Outdoor Dining Expansion

• Legislation signed into law earlier this session made outdoor dining and alcohol service permissions permanent for restaurants.

   

• These permissions, first granted during the pandemic when indoor dining was closed, were set to expire on November 30, 2024, creating uncertainty and recurring administrative hurdles for operators.

   

• NJRHA advocated for permanency, urging lawmakers and regulators to replace temporary extensions with a streamlined, long-term solution, providing operators with long-term flexibility, planning certainty and continued revenue opportunities.

Shaped Single-Use Utensil Legislation

• Legislation was introduced this session to reduce single-use waste by establishing a statewide framework limiting the automatic provision of disposable utensils and condiments at foodservice establishments, requiring them only upon customer request.

   

• The bill also imposed additional on-site service requirements for restaurants offering dine-in service.

   

• NJRHA worked with lawmakers to shape the legislation, supporting its waste-reduction goals while seeking amendments to ensure the bill could be implemented safely, consistently, and practically across the industry.

   

• Key amendments included:

   

  • Permitting self-serve open tray containers for condiments and utensils.

  • Allowing the use of portion (soufflé) cups.

  • Expanding the definition of “condiment” for self-serve

  • Decreasing the penalties for any violations

  • Establishing a preemptive measure for consistency

     

• The Legislature may advance this bill to the Governor’s Desk during the final voting session on Monday.

Prevented a “Fun Tax”

• Governor Murphy proposed placing sales tax on participatory sports, such as bowling and mini golf, as part of the FY 2026 budget.

   

• NJRHA raised early concerns about the tax and quickly mobilized operators, educated lawmakers, and led a strong call-to-action campaign.

   

• As a result of our advocacy efforts, NJRHA stopped a new tax on popular activities, avoided increased costs for families, tourists, schools, and local groups, and prevented threats to jobs and revenue for small businesses.

Advanced ‘No Pay, No Stay’ Legislation

• NJRHA worked with lawmakers to support legislation codifying a multi-factor test - consistent with existing New Jersey court standards - to clearly distinguish tenants from transient guests.

   

• This clarity helps property owners, guests, and the judiciary make informed determinations, reducing ambiguity and the risk of prolonged legal disputes.

   

• NJRHA will continue to support this bill in the new session.

Narrowed Kids’ Menu Mandate

• Legislators proposed a bill this session that would have required children’s meals served in restaurants to meet specific nutritional standards.

   

• NJRHA engaged with lawmakers to advocate for alignment with existing, nationally recognized programs, rather than creating duplicative or inconsistent state mandates.

   

• As a result of stakeholder input, the bill was narrowed from applying to all restaurants to chain restaurants only, and did not advance beyond committee.

Support NJRHA Advocacy

The outcomes outlined above didn’t happen by chance. Over the past two years, NJRHA’s ability to preserve industry stability - protecting the tip wage, shaping workable legislation, and stopping costly mandates - was made possible by sustained advocacy and strong relationships with policymakers.

 

That work is powered by the NJRHA Political Action Committee (PAC).

 

As the next legislative session approaches, continued PAC support is critical to ensuring the restaurant and hospitality industry has a seat at the table early - before harmful proposals gain momentum.

 

Your contribution helps NJRHA engage lawmakers, build coalitions and protect your business from policies that don’t reflect real-world operations.

 

If this advocacy matters to you, we ask that you consider supporting the NJRHA PAC today.

 

Together, we can continue to protect our industry, preserve flexibility, and promote smart, workable policy in New Jersey.

For more information, visit www.njrha.org