Assembly Speaker Shelia is calling for the state's minimum wage to be increased by $1.25, bringing it up to $8.50 from the current $7.25 an hour.
The current federal minimum wage is $7.25, but states can require employers to pay workers more.
Some state business leaders say the increase could cause employers to cut hours and benefits.
If the proposed plan is approved, New Jersey would be among the country's top three states for highest minimum wage.