NJ Minimum Wage Increasing to $15.49/Hour Jan. 1

On Oct 10, 2024

The New Jersey Department of Labor and Workforce Development (NJDOL) has announced that the state’s statewide minimum wage will increase by $0.36 to $15.49 per hour for most employees, effective January 1, 2025.

Pursuant to Article 1, Paragraph 23, of the New Jersey Constitution, and N.J.A.C. 12: 56-3.1(c), NJDOL sets the minimum wage for the coming year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.

“Aligning the state minimum wage with any increases in the cost of living is a critical step towards economic fairness and security for all New Jersey workers,” said NJDOL Commissioner Robert Asaro-Angelo. “This adjustment fosters a more equitable economy and ensures our workforce can continue to thrive.”

When Gov. Phil Murphy took office in 2018, the state’s minimum wage was $8.60 per hour. Legislation signed by the governor in February 2019 resulted in the gradual increase of the state’s minimum hourly wage to $15.13 on January 1, 2024 for most employees.

Under the law, the minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028 to lessen the impact on those businesses. The minimum hourly wage for these employees will increase to $14.53 on Jan. 1, up from $13.73.

Agricultural workers are guided by a separate minimum wage timetable under the law and their minimum wage rate will continue to increase incrementally until 2030. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $13.40, up from $12.81. Additionally, long-term care facility direct care staff will see their minimum hourly wage rise by $0.36, to $18.49.

Once the annual statutory increases in the minimum wage rate are completed for employees of small and seasonal employers (in 2028) and those who work on a farm for an hourly or piece-rate wage (in 2030), those minimum hourly wage rates will continue to increase annually, based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.

The minimum cash wage rate for tipped workers will rise to $5.62/hour from $5.26, with the maximum tip credit employers are able to claim remaining at $9.87. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference. For more on the rights and protections of tipped workers, visit: https://www.nj.gov/labor/worker-protections/myworkrights/tippedworkers.shtml

For more information on the state minimum wage, visit: https://www.nj.gov/labor/wageandhour/support/faqs/wageandhourworkerfaqs.shtml#minimumwage

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