New Jersey Minimum Wage Rate Increase Effective July 1, 2019
Beginning on July 1, 2019, the New Jersey state minimum wage rate will increase from the current rate of $8.85 per hour to $10.00 per hour. The rate will then continue to increase annually on January 1 by an additional $1.00 until it reaches $15.00 per hour in 2024. Thereafter, the minimum wage rate will be adjusted based on the federal consumer price index for all urban wage earners and clerical workers.
The chart below outlines the increases to take place on January 1 of each year.
Businesses with seasonal workers or that have less than six employees will have a second-tier minimum wage rate change, meaning increases in minimum wage will occur on a slower timeline. The minimum wage for these businesses will remain at $8.85 per hour until January 1, 2020, when it will increase to $10.30 per hour. The rate will then increase annually until January 1, 2028, when the regular state minimum wage rate will apply.
Tipped employees will also incur changes. Beginning July 1, 2019, the tip credit will increase from $6.72 per hour to $7.37 per hour, and then continue to increase annually by $1.00 until it reaches $9.87 per hour in 2024. With these changes, the minimum cash wage for tipped employees will increase from the current $2.13 per hour wage to $2.63 per hour starting on July 1, 2019. It will then be increased to $3.13 per hour in 2020, $4.13 per hour in 2021 and $5.13 per hour in 2022.
Employers must comply with these new state minimum wage laws. Please contact us at (973) 298-8500 or firstname.lastname@example.org with any questions you may regarding these minimum wage rate changes and how they will affect your business.