New Jersey’s statewide minimum wage will increase by $1.13 to $14.13 per hour for most employees, effective Jan. 1, 2023.
Annual increases in the minimum wage are required under a 2019 law that gradually raises hourly wages by $1 each year for most employees until a $15 per hour minimum wage is reached in 2024.
Under the law, the minimum wage increase can exceed $1 an hour if there is a significant increase in the Consumer Price Index, as happened this year.
The 2019 minimum wage law gave seasonal and small employers with fewer than six workers until 2026 to pay their workers $15 per hour to lessen the impact on their businesses. The minimum hourly wage for these employees will increase to $12.93 per hour on Jan. 1, up from $11.90.
Once the minimum wage reaches $15 an hour, the state Constitution specifies the wage must be raised annually to reflect any increase in the CPI.
Agricultural workers are guided by a separate minimum wage timetable and were given until 2027 to reach the $15 per hour minimum wage. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $12.01, up from $11.05.
Additionally, long-term care facility direct care staff will see their minimum wage rise by $1.13, to $17.13. This is because a law enacted in 2020 sets the minimum wage for direct care staff at long-term care facilities at $3 above the prevailing minimum wage rate.
Tipped workers’ cash wage will increase to $5.26/hour, with employers able to claim an $8.87 tip credit, an increase in the maximum allowable tip credit of $1. 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.