By: Jennifer Weitz, Esq. and Ty Hyderally, Esq.

Effective January 1, 2023, New Jersey’s minimum wage will increase to $14.13 per hour, a change of $1.13 from the State’s minimum wage in 2022. The raise is the result of legislation passed in 2019 that mandates annual increases until the minimum wage hits $15.00 an hour in 2024. The law calls for a yearly increase of $1.00 per hour, or more if there are significant increases in the Consumer Price Index–as was the case in 2022—and even after New Jersey’s minimum wage reaches $15 an hour, it will still be subject to adjustments based on the CPI. (The CPI measures the average change of prices.) The planned raise is all the more notable because immediately prior to passage of this legislation, New Jersey’s minimum wage was $8.60 an hour.

The new minimum wage will not apply to all hourly workers in the state. Seasonal and small business owners have until 2026 to hit the $15.00 an hour mark, to minimize the potential effects on their businesses. The minimum wage for employees in these sectors will still see a raise, though, to $12.93 an hour come January 1, up from $11.90 an hour currently. Similarly, agricultural employees will see their minimum wage increase to $11.70, and the wage for long-term care workers will increase to $17.13 an hour.

Tipped workers will see their minimum wage increase to $5.26. If the minimum cash wage plus an employee’s tips do not at least equal the state minimum wage, the employer must pay the employee the difference.

New Jersey joins a number of other states that are at or on track for a $15 minimum wage, including Connecticut, Delaware, Florida, Illinois, Maryland, Massachusetts, Rhode Island, and Virginia. Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than that of the state, but in those states (like New Jersey) with a minimum wage greater than the federal minimum wage, the state minimum wage prevails.

In states with no minimum wage, employers subject to the Fair Labor Standards Act (“FLSA”) must adhere to the federal minimum wage, currently $7.25. The FLSA, enacted in 1938, established the right to a minimum wage and to overtime pay for workers (“non-exempt” in FLSA lingo). Sixteen states plus Puerto Rico have a minimum wage equal to the federal minimum wage, and five states do not have any established minimum wage.

New Jersey has strict rules regarding wage compliance. For more information on New Jersey’s wage and hour requirements, click here.

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