By Cindy Christy Fertsch
The New Jersey Department of Labor and Workforce Development announced the new rate Tuesday, Sept. 29. The annual adjustment is tied to changes in the federal Consumer Price Index, a measure of inflation.
Different wage requirements apply to certain groups of employees, including agricultural workers, tipped workers and those employed by small or seasonal businesses.
Agricultural workers paid by the hour or by piece rate will reach a significant milestone in 2027, with their minimum wage increasing from $14.20 to $15 an hour. The agricultural wage is scheduled to continue rising through 2030.
Employees of small and seasonal businesses will receive a larger increase, from $15.23 to $16.25 an hour. Their wage schedule will continue under the state’s phased-in increases through 2028.
Direct-care employees at long-term care facilities will earn a minimum of $19.48 an hour, an increase of 56 cents.
The minimum cash wage for tipped employees will rise from $6.05 to $6.61 an hour. Employers must make up the difference whenever a worker’s cash wage and tips do not equal at least the state’s general minimum wage.
New Jersey voters approved a constitutional amendment in 2013 requiring the minimum wage to be adjusted annually based on inflation. A separate law signed by then-Gov. Phil Murphy in 2019 established a series of scheduled increases designed to move most workers toward a $15 minimum wage.
That law initially raised the general minimum wage from $8.85 to $10 an hour and called for annual increases of at least $1 through 2024. Higher inflation prompted an increase greater than $1 in 2022.
The state’s general minimum wage surpassed $15 in 2024 and has since continued to rise through the constitutionally required inflation adjustments. The 2019 law remains in effect for categories of workers placed on longer schedules to reach the $15 threshold.
