New Jersey Minimum Wage 2026: $15.92 per Hour, $15.23 for Small Employers
New Jersey minimum wage is $15.92 per hour for most employers in 2026, $15.23 for seasonal and small employers with fewer than six workers, $14.20 for farm workers, and a $6.05 cash wage for tipped staff; the rate adjusts for inflation every January 1.
The New Jersey minimum wage is $15.92 per hour for most employees, effective January 1, 2026, up from $15.49 in 2025. Seasonal employers and small employers with fewer than six employees pay $15.23, agricultural employers pay $14.20, and long-term care facilities pay direct care staff $18.92, three dollars above the standard rate. The tipped cash wage is $6.05 with a maximum tip credit of $9.87. New Jersey reached the $15.00 target set by its 2019 law in 2024 and now adjusts every January 1 for inflation. No city in New Jersey sets its own rate. See how New Jersey compares in our minimum wage by state guide.
Current New Jersey Minimum Wage
The New Jersey Department of Labor and Workforce Development administers the New Jersey Wage and Hour Law, and the US Department of Labor's state table lists the 2026 rates as of July 1, 2026. New Jersey runs four tiers:
| Employee group | 2026 minimum wage |
|---|---|
| Most employees | $15.92 |
| Seasonal employers and small employers (fewer than six employees) | $15.23 |
| Agricultural employees (hourly or piece rate) | $14.20 |
| Direct care staff at long-term care facilities | $18.92 |
The small-employer tier counts employees at all locations, and "seasonal" means a business that operates only between May 1 and September 30 or earns at least two-thirds of its annual revenue in a continuous 16-week period. The small and seasonal rate is scheduled to catch up with the standard rate by 2028, and the agricultural rate by 2030, under the phase-in written into the 2019 law.
New Jersey Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Notes |
|---|---|---|
| Federal minimum wage | $7.25 | Since 2009 |
| New Jersey standard rate | $15.92 | From January 1, 2026 |
| New Jersey small and seasonal rate | $15.23 | Fewer than six employees, or seasonal |
| Local rates | None | Set by state law only |
New Jersey's rate is above New York's upstate rate of $16.00 only for direct care workers, and below neighboring New York City ($17.00) and Connecticut ($16.94), but far above Pennsylvania's $7.25 and Delaware's $15.00.
Tipped Minimum Wage in New Jersey
New Jersey allows a tip credit of up to $9.87 per hour, so the cash wage for tipped employees is $6.05 in 2026 ($15.92 minus $9.87). The tip credit amount was fixed in dollars by the 2019 law, which means the cash wage rises each year by the same amount as the standard minimum wage.
Employers may take the credit only when:
- The employee's cash wage plus tips reaches $15.92 for every hour worked in the workweek; any shortfall is owed by the employer.
- The employee is told in advance that a tip credit is being taken.
- Tips are retained by the employee or shared through a valid tip pool of customarily tipped staff.
Employees of small and seasonal employers are owed a cash wage that brings them to $15.23, so the arithmetic differs for those businesses. Confirm the exact small-employer cash wage with the Department before payroll.
New Jersey Minimum Wage Increase Schedule
The 2019 law raised the rate in fixed steps to $15.00 for most employers by January 1, 2024. Since then, and for every year going forward, the rate rises on January 1 by the increase in the consumer price index for urban wage earners and clerical workers (CPI-W). If a fixed step would have been higher than the CPI adjustment in any year, the law also let the Department add the difference, which is why 2025 and 2026 rose by more than inflation alone.
| Effective date | Most employers | Small and seasonal | Agricultural |
|---|---|---|---|
| January 1, 2021 | $12.00 | $11.10 | $10.44 |
| January 1, 2022 | $13.00 | $11.90 | $10.90 |
| January 1, 2023 | $14.13 | $12.93 | $12.01 |
| January 1, 2024 | $15.13 | $13.73 | $12.81 |
| January 1, 2025 | $15.49 | $14.53 | $13.40 |
| January 1, 2026 | $15.92 | $15.23 | $14.20 |
| January 1, 2027 | CPI adjustment | CPI adjustment plus catch-up step | Scheduled increase |
The Department announces the next year's rates in the fall, typically by October. Budget for a 2027 standard rate near $16.30 to $16.40 based on recent inflation, and confirm when the notice is published.
Local Minimum Wages in New Jersey
New Jersey has no municipal minimum wages. The state Wage and Hour Law sets a uniform floor, and no city, including Newark, Jersey City and Paterson, has adopted a separate ordinance for private employers. Some municipalities set living wage requirements for their own contractors, which affect vendors on public contracts only. Employers with locations across the state can apply one rate table, adjusted only for the small, seasonal and agricultural tiers.
Who Is Covered and Who Is Exempt
The New Jersey minimum wage covers nearly all employees, including part-time, temporary and seasonal workers. Exclusions include:
- Exempt executive, administrative and professional employees who meet the federal duties tests and the $684 weekly salary floor; New Jersey has no higher state threshold. See exempt vs non-exempt employees.
- Outside salespeople, and minors under 18 in certain occupations covered by separate rules.
- Full-time students employed by their college or university, who may be paid 85 percent of the minimum wage.
- Employees at summer camps, conferences and retreats operated by nonprofits during the summer months.
- Some volunteers and trainees in narrow categories.
New Jersey also permits a training wage of 90 percent of the minimum wage for the first 120 hours of work for employees in an approved on-the-job training program, though few employers use it.
Overtime and the Minimum Wage
New Jersey requires 1.5 times the regular rate for hours over 40 in a workweek. There is no daily overtime. See overtime pay laws in the US for the full rules.
A minimum wage employee working 45 hours earns:
| Hours | Rate | Pay |
|---|---|---|
| 40 regular hours | $15.92 | $636.80 |
| 5 overtime hours | $23.88 | $119.40 |
| Weekly gross pay | $756.20 |
For tipped employees, overtime is calculated on the full $15.92 rate before the tip credit is applied. The overtime calculator shows the cash owed for any combination.
What a Minimum Wage Worker Earns in New Jersey
| Period | Hours | Standard ($15.92) | Small and seasonal ($15.23) |
|---|---|---|---|
| Week | 40 | $636.80 | $609.20 |
| Month (average) | 173.33 | $2,759.41 | $2,639.82 |
| Year | 2,080 | $33,113.60 | $31,678.40 |
New Jersey has a state income tax and payroll deductions for unemployment, disability and family leave insurance, so take-home pay is lower than the gross figures above. See gross pay vs net pay for the breakdown, and the salary to hourly calculator to compare a salary offer.
Employer Compliance Checklist
- Post the current New Jersey minimum wage notice (form MW-220) and the Wage and Hour Law abstract.
- Identify which tier applies: count employees at all locations and check the seasonal definition before using the $15.23 rate.
- Pay $15.92 for every hour worked, and $6.05 in cash plus tips for tipped staff, reconciled weekly.
- Pay direct care staff at long-term care facilities at least $18.92.
- Keep time and pay records for six years, the period New Jersey allows for wage claims; a time card calculator helps verify weekly totals.
- Calendar the fall announcement of the 2027 rate and update payroll before January 1.
- Review the New Jersey labor law guide for earned sick leave, pay frequency and final pay rules.
Frequently Asked Questions
What is the minimum wage in New Jersey in 2026?
$15.92 per hour for most employees. Seasonal and small employers with fewer than six employees pay $15.23, agricultural employers pay $14.20, and long-term care facilities pay direct care staff $18.92.
Is New Jersey minimum wage going up in 2027?
Yes. The rate rises every January 1 by the change in the CPI-W, and the small, seasonal and agricultural tiers also take scheduled catch-up steps. The Department of Labor announces the figures in the fall.
What is the tipped minimum wage in New Jersey?
$6.05 per hour in cash in 2026, with a tip credit of up to $9.87. Tips must bring the employee to $15.92 for every hour worked.
Does Newark or Jersey City have a higher minimum wage?
No. New Jersey has no local minimum wages; the state rate applies everywhere.
Is New Jersey minimum wage $15?
It passed $15 in 2024 and is $15.92 in 2026. Small and seasonal employers reached $15.23 in 2026.
Who counts as a small employer in New Jersey?
An employer with fewer than six employees, counted across all locations. Seasonal employers, which operate only from May through September or earn two-thirds of revenue in a 16-week window, use the same lower rate.
Is there a youth or training wage in New Jersey?
Full-time students working for their own college may be paid 85 percent of the minimum, and an approved training program may pay 90 percent for the first 120 hours. There is no general youth rate.
How long can a New Jersey employee wait to claim unpaid minimum wages?
Six years. Since the 2019 Wage Theft Act, employees can recover unpaid wages plus liquidated damages of up to 200 percent, so accurate time records matter.
Sources
- New Jersey Department of Labor: Wage and Hour Laws
- New Jersey Department of Labor: Public Notice, Minimum Wage 2026
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: Minimum Wages for Tipped Employees
Reviewed September 2026
New Jersey adjusts all four tiers every January 1. Confirm the current figures with the New Jersey Department of Labor and Workforce Development before setting pay rates.
Four Rates, Zero Spreadsheets
HiveDesk tracks hours automatically and produces timesheets by employee, so tiered minimum wages, tip credits and overtime are calculated from accurate data. $5/user/month, 14-day free trial.