How much New Jersey's minimum wage will increase on Jan. 1, 2023
NEW JERSEY - The New Jersey minimum wage is rising to $14.13 an hour for most employees on Jan. 1, 2023. It is rising $1.13 an hour from the current rate of $13 an hour.
Tipped workers’ cash wage will increase to $5.26/hour, with employers able to claim an $8.87 tip credit, an increase in the maximum allowable tip credit of $1. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.
Annual increases in the minimum wage are due to a 2019 law that raises the wage floor to $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 (CPI), as happened this year.
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The state’s minimum wage was $8.60 per hour in 2018.
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 will increase to $12.93/hour on Jan. 1, up from $11.90.
Agricultural workers are guided by a separate minimum wage timetable and were given until 2027 to reach the $15/hour minimum wage.
Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $12.01, up from $11.05. Additionally, long-term care facility direct care staff will see their minimum wage rise by $1.13, to $17.13.
The New York state minimum wage is rising to $14.20 an hour. New York City, Westchester, and Long Island have a $15-an-hour minimum wage.