New Jersey’s statewide minimum wage will increase by $0.56 to $16.48 per hour for most employees, effective Jan. 1, 2027.
“Fair wages are the foundation of a strong economy,” said Acting Labor Commissioner Kevin D. Jarvis. “Reaching the $15 benchmark for our agricultural workforce is a particularly meaningful step toward ensuring equity across industries.”
Seasonal and Small Employers
The rate for employees of seasonal and small employers (fewer than six employees) will increase to $16.25 on Jan. 1, up from $15.23. Additionally, long-term care facility direct care staff will see their minimum hourly wage rise by $0.56, to $19.48.
The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage for the coming year based on increases in Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics.
Big Win For Agricultural Workers
Agricultural workers will reach a significant milestone on Jan. 1 when their rate increases to $15 per hour, up from $14.20. This marks the first time farm employees working for an hourly or piece-rate wage will earn the benchmark $15 rate under P.L. 2019, c. 32, which has incrementally increased the minimum wage to $15 per hour through an extended timetable for these workers.
Once the annual statutory increases in the minimum wage rate are completed for employees of small and seasonal employers (in 2028) and those who work on a farm for an hourly or piece-rate wage (in 2030), those minimum hourly wage rates will continue to increase annually, along with the minimum hourly wage rate for other employees.
CPI Data, Tipped Workers
Article 1, Paragraph 23, of the New Jersey Constitution requires that the minimum hourly wage rate be adjusted annually based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.
The minimum cash wage rate for tipped workers will rise from $6.05 to $6.61 an hour, while the maximum tip credit employers can claim remains $9.87. 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.
For more on tipped workers’ rights and protections, click here. For a list of FAQ, click here.