LABOR LAW NEWS

New Jersey Increases Minimum Wage

By Kelsey Basten

Published on February 12, 2019

New Jersey Governor Phil Murphy signed a new minimum wage bill into law on Feb. 4, 2019. The new law raises the current rate of $8.85 to $15 by 2024.

Each year, the minimum wage will increase based on the consumer price index (CPI), or by at least $1.00, whichever is greater.

Indexed Wage Increases by Type of Employer

The minimum wage increase scheduled for employers with five or more employees starts on July 1, 2019, and increases each year as follows:

  • July 1, 2019: $10
  • 1, 2020: at least $11
  • 1, 2021: at least $12
  • 1, 2022: at least $13
  • 1, 2023: at least $14
  • 1, 2024: at least $15

The minimum wage increase scheduled for employers with less than five employees starts on Jan. 1, 2020, and increases each year as follows:

  • 1, 2020: at least $10.30
  • 1, 2021: at least $11.10
  • 1, 2022: at least $11.90
  • 1, 2023: at least $12.70
  • 1, 2024: at least $13.50
  • 1, 2025: at least $14.30
  • 1, 2026: at least $15

For agricultural employers and employees, the minimum wage will increase starting Jan. 1, 2020, and in the years after as follows:

  • 1, 2020: at least $10.30
  • 1, 2022: at least $10.90
  • 1, 2023: at least $11.70
  • 1, 2024, $12.50

The New Jersey Labor Commissioner and Secretary of Agriculture will review the impact of the increases on the agricultural industry no later than March 31, 2025. They will issue a recommendation on if the state should continue to increase agricultural wages to $15 by 2027.

Last, at this time, employers of tipped employees are required to pay a $2.13 tipped wage. This wage will increase to at least $5.13 on Jan. 1, 2024.

Posting Requirement

Along with the new wage law, the New Jersey Department of Labor and Workforce Development issued a new Wage and Hour Law Abstract posting. This must be displayed in all New Jersey workplaces. The new posting has not yet been issued.

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This Labor Law News Blog is intended for market awareness only, it is not to be used for legal advice or counsel.

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