New Jersey’s statewide minimum wage increased by $1.13 to $14.13 per hour for most employees, effective Jan. 1, 2023.
In February 2019, Gov. Phil Murphy signed legislation that established annual increases in the minimum wage so that it would be $15 per hour by 2024 for most employees. Under the law, the minimum wage increases by $1 per hour – or more if warranted because of significant increases in the Consumer Price Index, as happened this year.
The New Jersey Department of Labor and Workforce Development sets the minimum wage for the coming year using the rate specified in the law or a calculation based on the CPI, whichever is higher. Once the minimum wage reaches $15 per hour, the state constitution specifies that it will continue to increase annually based on any increase in the CPI.
Under the law, seasonal and small employers were given until 2026 to pay their workers $15 per hour to lessen the impact on their businesses. The minimum hourly wage for these employees increased to $12.93/hour on Jan. 1, up from $11.90.
There are also variations for agricultural workers, long-term care facility direct care staff and tipped workers, which you can learn more about by referring to this news release.