The State of New Jersey recently released a revised notice informing employees of the 2025 minimum wage, as outlined in the updated New Jersey minimum wage poster. Specifically, the New Jersey Department of Labor and Workforce Development revised its Wage & Hour Law Abstract poster to reflect a minimum wage increase from $15.13 per hour to $15.49 per hour. The wage increase took effect January 1st, 2025.
Why Did the New Jersey Minimum Wage Increase for 2025?
New Jersey is one of several U.S. states that adjust its minimum wage rate annually to reflect inflation. The thirty-six cent increase on January 1st, 2025, resulted from changes to the Consumer Price Index.
Who Is Exempt from the Minimum Wage Requirement in New Jersey?
The Department of Labor and Workforce Development states that certain workers and occupations are exempt from the minimum wage requirement. These occupations include automobile salespersons, outside salespersons, hotel and motel workers, minors under 18 working in food service and retail, laundry service workers, and apparel workers.
While the increased rate of $15.49 per hour covers most employees working in New Jersey, current state law allows for lower hourly wage rates for certain types of businesses and workers. Seasonal and smaller employers with less than six employees must pay employees at least $14.53 per hour in 2025, while agricultural employers must pay at least $13.40 per hour. Long-term facility direct care workers working in New Jersey must receive a higher minimum wage, totaling at least $18.49 per hour worked as of January 1.
What is the 2025 Tipped Employee Minimum Wage Rate in New Jersey?
Tipped employees in New Jersey must earn a cash wage of at least $5.62 per hour in 2025. Under state law, a tipped employee regularly receives at least $30 monthly in tips, excluding service charges. If the employee's allocated tips do not result in an hourly total compensation equaling the 2025 minimum wage rate, employers must make up the difference.
Under New Jersey state law, tips solely belong to the employee, and employers may not take or deduct any portion of an employee's tips if they wish to use the tip credit. Deducting from an employee's earned tips without a bona fide tip pooling arrangement violates New Jersey's Wage Payment Law and minimum wage regulations.
Employer Takeaways
New Jersey employers must immediately post the revised 2025 Wage & Hour Law Abstract Poster to notify affected workers of the increased minimum wage rates. Additionally, employers who previously paid non-tipped and tipped employees at rates below the new 2025 state minimums must adjust employee compensation accordingly.
Labor Law Posters Online's revised 2025New Jersey Labor Law Poster now includes the recently released Wage & Hour Law Abstract. Our all-on-one compliance solution is guaranteed to include all recent updates to any required state and federal posters. Existing Labor Law Posters Online customers who purchased an annual poster subscription plan will receive the revised notice at no additional cost as part of their automatic poster update service.
