| EFFECTIVE DATE | NEW JERSEY MINIMUM WAGE |
| January 1, 2024 | $15.13 |
| January 1, 2025 | $15.49 |
| January 1, 2026 | $15.92 |
| January 1, 2027 | TBD |
Looking for minimum wage rates by state? Click here to view the minimum wage chart by state.
There are a few exemptions detailed in the NJ State Wage & Hour Laws; however, the primary exemption includes any person exempt under the Fair Labor Standards Act (FLSA) classifications.
Additional exceptions to the New Jersey minimum wage include:
“Tipped employees” are classified as someone who regularly makes over $30 a month in tips. Similar to other employees, “tipped employees” have the right to make a minimum wage of $15.92 per hour. However, an employer only has to pay employees $6.05 per hour in his or her paycheck, as long as the employee makes a minimum of $9.87 per hour in tips, making the total pay per hour $15.92.
Employers may take a tip credit against an employee's wages for the amount earned in tips. To make up the difference in pay, if an employee makes less than $9.87 per hour in tips in a given work week, the employer must pay the employee’s earnings equal to $15.92 per hour.
Signed by President Trump on July 4, 2025, the One Big Beautiful Bill Act allows applicable employees, including those self-employed, to claim a tax reduction on qualified tips received from his or her occupation. The tip tax deduction is effective from January 1, 2025, through December 31, 2028.
The occupation must be listed by the IRS as “customarily and regularly” receiving tips and must be reported on a Form W-2 or other applicable statements that report qualified tips (ex: Form 4137 for tips not reported to the employer).
An employee can deduct an annual maximum amount of $25,000. For self-employed individuals, the deduction amount cannot exceed his or her net income from the trade or business where the tips were earned. If an employee’s modified adjusted gross income (MAGI) exceeds $150,000, or $300,000 for employees filing taxes jointly, the amount allowed to be deducted will be reduced by $100 for each $1,000 earned above the MAGI.
To be eligible for the tip tax deduction, employees must include a Social Security number on the tax return for the given tax year. If married, the employee must also file jointly to remain eligible. Even if individuals opt for a standard deduction (vs. itemized deductions) on a tax return, the individual is still eligible for the annual maximum deduction for tipped wages.
Note that self-employed individuals categorized in a Specific Trade or Business (SSTB) under section 199A are NOT eligible.
All employers must file information returns to the IRS or Social Security Administration (SSA), as well as deliver the applicable forms, including a W-2, to employees that show the cash tips received and the occupation of the tip recipient.
New Jersey sets a separate minimum wage rate from the state standard for both small businesses with fewer than 6 employees and employers hiring workers for seasonal help between May 1 and September 30. Both employee categories fall under the same special minimum wage rate at $15.23 per hour.
By January 1, 2028, the minimum wage rate for small businesses and seasonal employees will match the standard state rate.
Agricultural employers are allowed to pay their workers a special minimum wage of $14.20 per hour for those who work on a farm and receive either an hourly or piece-rate compensation.
By January 1, 2030, the minimum wage rate for agricultural employees will match the standard state rate.
Introduced in Assembly Bill 4482 and effective since November 1, 2020, employees involved in direct care at a long-term care facility must be paid $3 higher than the state's standard minimum wage rate, which for 2026 is $18.92 per hour. Employers that qualify as a "long-term care facility" include:
Effective January 1, 2020, an employer may pay employees enrolled in a training program less than the state minimum wage, provided the rate is at least 90% of the prevailing state rate. For 2026, the training minimum wage rate can be no lower than $14.33 per hour for the employee's first 120 hours of work.
Note that employee training programs under the NJ State Wage and Hour Laws means an on-the-job or other form of training that, when completed, results in the employee earning an industry-valued credential or awarded credit that may be directly applied toward the earning of an industry-valued credential (certifications assessed by the state). More information on New Jersey industry-valued credentials can be found on this resource from the New Jersey Department of Labor (NJDOL) website.
The state of New Jersey recognizes the federal overtime regulations set forth by the FLSA. If an employee works more than 40 hours in an average seven-day workweek, the employee is to receive an overtime rate of 1.5 times the employee's regular hourly rate.
Unique to New Jersey, a standalone law exists that provides specific rules and regulations for healthcare employees' overtime.
Under NJSA 34:11-56a31, hourly healthcare employees involved in direct patient care activities or clinical services working at a health care facility cannot be forced to work overtime unless unforeseen emergencies occur. This means overtime can only be voluntary for applicable employees, and he or she is protected from any form of retaliation by the employer (discipline, discrimination, termination, etc.).
Employees covered by the mandatory overtime restrictions can include nurses and nurse's aides. Physicians and volunteers are exempt from this rule.
Employees exempt from the minimum wage in New Jersey include workers based on the Federal FLSA classifications.
Additionally, New Jersey highlights several unique exemptions that affect a worker's right to the state's minimum wage and overtime law:
New Jersey does not require employers to give specific meal or rest breaks to adult employees; however, employers that choose to offer such breaks must adhere to the specific guidelines set forth by the FLSA regarding payment and length.
For compliance with New Jersey labor laws, employers must visibly display the New Jersey minimum wage in a conspicuous location that all employees have access to in the workplace. An all-in-one New Jersey Labor Law Poster will cover all the required state and federal labor law postings.
Note that each time the minimum wage is updated, the labor law poster must be replaced in the workplace. A labor law poster subscription service will automatically provide updated mandatory notices that need to be posted for employees as additional changes take place with New Jersey's state or local laws.
Under the NJ Wage Theft Act, Employers violating New Jersey wage and hour laws can be subject to the following penalties required by the NJDOL:
Businesses struggling to maintain minimum wage compliance or manage payroll may want to consider outsourcing payroll to a New Jersey payroll service company. Areas for additional knowledge and learning include the basics of payroll and what to know about modern payroll software.
To learn more about how Employer Pass is helping countless businesses maintain minimum wage compliance, contact us today or use the find a provider tool.