New Jersey Minimum Wage Increase Coming on January 1st
According to a report from The National Law Review, the New Jersey state minimum wage is set to increase on January 1st, 2025. It will be more than twice as high as the federally mandated minimum wage. Here, our New Jersey wage and hour attorney provides an overview of key things to know about the law.
Know the Law: Gradual Minimum Wage Increases in New Jersey
New Jersey has been gradually implementing a higher minimum wage. Under Article I, Paragraph 23 of the New Jersey Constitution and implementing regulation N.J.A.C. 12:56-3.1(c), the state sets its minimum wage annually based on the Consumer Price Index (CPI) or the statutory rate, whichever is higher.
In 2024, a $15.00 minimum wage baseline was established. Going forward, automatic adjustments are being made to account for inflation. For 2025, the minimum wage in New Jersey was set at $15.49. State regulators recently confirmed that the minimum wage will jump to $15.92 per hour. For reference, that is an increase of nearly three percent.
What to Know About Special Rates, Exemptions, and Worker Categories in New Jersey
While the $15.92 per hour minimum wage rate applies to the majority of workers, the law maintains differentiated rates for certain employer sizes and categories. To start, employers with five or fewer employees or seasonal employers must pay a reduced minimum wage of $15.23 per hour. Further, agricultural workers (paid hourly or piece-rate) have a distinct schedule for the minimum wage as well. Their minimum wage rate will jump up to $14.20 per hour as of January 1st, 2026. All of the increases reflect the change in inflation.
Note: Tipped employees are also subject to separate rules. Employers may pay a lower cash wage, but tips plus cash must at least equal $15.92 per hour. For 2025, the minimum hourly cash wage is $6.05, with the balance made up via tip credits, subject to statutory limits.
Employers Must Automatically Update Pay to Ensure Compliance With the Minimum Wage
As soon as the calendar rolls over into 2026, the updated minimum wage will apply in New Jersey. Given that is how the law operates, New Jersey employers are legally required to adjust employee pay automatically when the state minimum wage increases. The failure to comply violates the New Jersey Wage and Hour Law and it can result in back pay, liquidated damages, and civil penalties. Employers cannot rely on employees to request higher pay or waive their rights. Payroll systems, offer letters, and posted notices must reflect the updated rates.
Call Our New Jersey Minimum Wage Attorney Today
At Poulos LoPiccolo PC, our New Jersey wage and hour lawyer has the knowledge, skills, and experience to handle minimum wage cases. If you believe that you were underpaid in violation of state law, please do not hesitate to contact us today for a fully confidential consultation. With an office in Monmouth County, we handle minimum wage claims throughout New Jersey.
Source:
natlawreview.com/article/new-jersey-minimum-wage-rate-increase-january-1-2026
