New Jersey Minimum Wage Laws




Minimum wage

New Jersey’s current minimum wage is $8.38. NJ Constitution Art. I, Section 23; NJ Dept. of Labor and Workforce Dev.: Minimum Wage

New Jersey’s Constitution requires an annual review of its minimum wage. The minimum wage must be increased by the percentage the cost of living has changed from the prior September 30 to September 30 in the year the review is conducted. The cost of living change is based on consumer price index for all urban wage earners and clerical workers (CPI-W) published by the federal government. Any change to the minimum wage takes effect on January 1 of the following year. Additionally, if the federal minimum wage is raised to a level higher than that of New Jersey, New Jersey’s minimum wage automatically increases to the higher federal rate and all subsequent cost of living increases to New Jersey’s minimum wage will be based off of the new rate. FLSA: Minimum Wage.

If an employer chooses to pay employees minimum wage, the employer must pay those employees in accordance with the minimum wage law, either federal or state, that results in the employees being paid the higher wage. In most instances in New Jersey, the New Jersey minimum wage will apply as it generally guarantees a higher wage rate for employees than federal law.





Tip minimum wage

New Jersey has not set a minimum wage an employer must pay tipped employees. Employers may pay tipped employees the hourly wage rate of their choosing (including not paying an hourly wage at all), however, it must ensure employees are paid the standard minimum wage when an employee’s tipped wages are combined with tips received. See NJ Statute 34:11-56a1(d) (definition of wage includes gratuities) If the employee does not receive enough tips to ensure they are paid the standard minimum wage, the employer must pay the difference. NJ Admin. Code 12:56-8.5 The New Jersey Department of Labor and Workforce Development suggests employers pay employees a minimum wage of $2.13, which is the minimum wage for tipped employees set forth by the federal Fair Labor Standards Act. NJ Dept. of Labor FAQS.

Gratuities or tips are money paid by customers to employees for services rendered. NJ Admin. Code 12:56-8.1(b) Gratuities are the property of the employee who received them, subject to any tip pooling or tip sharing arrangements. NJ Admin. Code 12:56-8.4(b)



Tip pooling and sharing

New Jersey law allows employers to require employees to participate in a tip pooling arrangement. NJ Admin. Code 12:56-8.4(b) New Jersey law allows employees to voluntarily participated in tip splitting or sharing, where the employees who receive tips splits or shares them with other employees who perform service related tasks. NJ Admin. Code 12:56-8.2 It is unclear whether employers may require employees to participate in a tip splitting or sharing arrangement.



Subminimum wage

Employees with disabilities

New Jersey minimum wage laws allow sheltered workshops, education institutions, approved rehabilitation programs, and other employers to pay employees with disabilities less than the standard minimum wage if they have received a permit from the New Jersey Office of Wage and Hour Compliance to do so. The permit issued by the Office of Wage and Hour Compliance will contain the minimum wage to be paid the disabled employee and the period of time for which the permit is valid. In some circumstances, the Office of Wage and Hour will issue a blanket permit to an entire sheltered workshop or a department thereof. NJ Statute 34:11-56a17(b); NJ Admin. Code 12:56-9.1-9.5



Trainees

New Jersey minimum wage laws do not allow employers to pay trainees a subminimum wage that is less than the standard minimum wage.



Apprentices

New Jersey minimum wage laws do not allow employers to pay apprentices a wage rate that it less than the standard minimum wage. New Jersey’s authorizes the Department of Labor and Workforce Services to implement regulations permitting employers to pay learners less than the minimum wage; however, the Department of Labor and Workforce Services has not done so. NJ Statute 34:11-56a17(a)



Learners

New Jersey minimum wage laws do not allow employers to pay learners a wage rate that it less than the standard minimum wage. New Jersey’s authorizes the Department of Labor and Workforce Services to implement regulations permitting employers to pay learners less than the minimum wage; however, the Department of Labor and Workforce Services has not done so. NJ Statute 34:11-56a17(a)



Student learners

New Jersey minimum wage laws do not allow employers to pay student learners a wage rate that it less than the standard minimum wage. New Jersey’s authorizes the Department of Labor and Workforce Services to implement regulations permitting employers to pay learners less than the minimum wage; however, the Department of Labor and Workforce Services has not done so. NJ Statute 34:11-56a17(a)



Student workers

New Jersey minimum wage laws do not allow employers to pay student workers a wage rate that it less than the standard minimum wage.