New Jersey Minimum Wage Increase Effective January 1, 2021

Effective January 1, 2021, the State of New Jersey minimum wage increased to $12.00 for most employees working in the Garden State. Seasonal or small employers (with fewer than six employees) are required to pay a minimum wage of $11.10. Agricultural employers are required to pay $10.44 per hour and the cash wage for tipped workers is $4.13. Keep in mind that cash wage plus tips must equal the minimum wage.

Update Payroll Systems

If you are an employer based in New Jersey, make certain your payroll provider has updated the current New Jersey minimum wage rates in their system.

Minimum Wage Changes Continue Through 2027 for Some Employers

The New Jersey Department of Labor published a schedule with dates and rate increases. The rates in most categories are scheduled to increase through 2024, until the hourly rate reaches $15.

A longer timeframe is in place for certain employer categories to reach the $15 minimum wage rate. For example, seasonal and small employers with fewer than six employees, the New Jersey minimum wage will continue to increase through January 1, 2026. For agricultural employers, the New Jersey minimum wage will continue to increase through January 1, 2027.

The last scheduled rate increase for cash wage for tipped workers is scheduled for January 1, 2022. In addition, there are no changes planned for 2023 and 2024 for cash wage for tipped workers, but government officials will revisit this and make a decision on or before January 1, 2025.

For more information, please visit the New Jersey Department of Labor and Workforce Development webpage or press release.

DISCLAIMER: The WM Daily Update COVID-19, COVID-19 Business Resources and COVID-19 Client News Alerts and other related communications are intended to provide general information on legislative COVID-19 relief measures as of the date of this communication and may reference information from reputable sources. Although our firm has made every reasonable effort to ensure that the information provided is accurate, we make no warranties, expressed or implied, on the information provided. As legislative efforts are still ongoing, we expect that there may be additional guidance and clarification from regulators that may modify some of the provisions in this communication. Some of those modifications may be significant. As such, be aware that this is not a comprehensive analysis of the subject matter covered and is not intended to provide specific recommendations to you or your business with respect to the matters addressed.