The New Jersey State Assembly approved a $2 increase in the state minimum wage last week.
University officials said the law will have no immediate effect on employees at Princeton, but student wages are expected to rise in coming years.
The increase will take place in stages over the next two years and will raise the current minimum wage of $5.15 an hour to $6.15 an hour in October 2005 and $7.15 an hour by 2006.
Because all University employees are paid above the current minimum wage, the changes will have no immediate affect, according to media relations officer Eric Quinones and Director of Student Employment Betty Ashwood.
"All University employees are paid above the minimum wage, so the state increase will not have an effect on campus," Quinones said in an email.
In October 2006, the minimum wage will surpass the lowest-paying job rate for students, which is currently $6.45 an hour.
"In the 2006-07 year, we will have to review the sitting job rate, or the lowest student wage rate at Princeton," Ashwood said. "However, we anticipate that the impact will be minimal since most students are working at jobs that pay more than this."
Despite the high-paying jobs that Princeton offers, many students have opted to work outside of the University for businesses in town. The minimum wage increase may affect these students' salaries.
Chelsea Carter '08 works as a retail clerk for Ann Taylor, a popular clothing store on Nassau Street.
"The reason I wanted to work on Nassau Street is that I wanted to get different work experience that you can't get on campus," Carter said in an interview.
"The customer relations experience that I am getting from retail is difficult to get sitting at a desk during an on-campus job," she added.
Carter said she believes that the wage increase will encourage students to explore job options off-campus.
"Since the jobs on campus already pay well, now students will not be limited to Princeton jobs and can find good-paying work on Nassau," she said.
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