New Jersey’s Minimum Wage Increases Starting January 1, 2021

New Jersey’s Minimum Wage Increases Starting January 1, 2021

December 22, 2020

New Jersey’s mandatory minimum wage requirement will be effective January 1, 2021.

For most employers, the 2021 minimum wage for compensating employees will be $12 per hour (up from $11 per hour in 2020). For tipped employees, the minimum cash wage the employer will be able to pay is $4.13 per hour (up from $3.13 per hour in 2020), provided that the cash wage paid by the employer plus tips earned by the employee equals the $12 per hour minimum wage. 

There are other exceptions to the $12 per hour general minimum wage requirement.  For example, the minimum wage requirement may not be applicable to certain employees “in training,” seasonal workers, small employers, agricultural workers, and direct care staff at long-term care facilities. 

The minimum wage increase which goes into effect on January 1, 2021, is one step in a series of incremental minimum wage increases scheduled to take place annually until January 1, 2024 when the minimum wage for most workers will increase to $15 an hour.  These minimum wage increases are required under an amendment to New Jersey’s Wage and Hour Law signed into law by Governor Murphy in 2019.  Saiber LLC discussed the amendment in a February 7, 2019 article available here

If you have any questions about the new minimum wage requirements, please contact DanaLynn T. Colao or Ryan E. San George of Saiber LLC’s Employment and Labor Law practice.