New Jersey MINIMUM WAGES

New Jersey State Minimum Wage for 2025

Starting January 1, 2025, New Jersey’s minimum wage increases to $15.49 per hour for non-tipped workers. This is a 2.35% increase from the last year rates, based on the Consumer Price Index (CPI), as mandated by the state constitution.

For tipped employees, the minimum wage rates rise to $5.62 per hour, with a maximum tip credit of $9.87. Employers must ensure the total earnings equals to or exceeds the minimum wage rate of $15.49 per hour.

Other special wages of the region includes:

• Farm labors aged 18 and above will earn $14.30 per hour  in 2025.
• Seasonal and small employers can pay a lower minimum wage of $14.53 per hour.
• Long-term care facility direct care care staff are entitled to receive a minimum wage of $18.49 per hour.

Overtime pay is to be paid at 1.5 times the regular rates  for hours work beyond the usual 40 hour a week.

Further changes to the minimum wages will be made annually based on inflation and increasing cost-of-living.

Minimum Wages in New Jersey Cities

The table below shows minimum wage rates across the top 30 cities of New Jersey.  

Threshold For Employees Exempt

As per the Fair Labor Standards Act (FLSA), employees are categorized as exempt and non-exempt. Wage changes impact both the parties, but in different ways. 

Non-exempt employees typically work on an hourly basis and qualify to receive the minimum wage as defined by state or federal laws. They’re also entitled to overtime pay at 1.5 times their hourly pay if they work beyond 40 hours per week. An increase or decrease in minimum wages directly impacts their income and livelihood.  

On the other hand, exempt employees are usually salaried personnel and are not entitled to receive the state minimum. To qualify as exempt in New Jersey, employees must earn $844 per week or $43,888 per year. While exempt employees are not directly impacted by increase in minimum wage laws, it can certainly lead to salary threshold adjustments, pushing employers to raise their salaries to maintain the pay difference from non-exempt workers.  

Many states across the U.S. have set comparatively higher salary thresholds for exempt employees owing to their local wage standards. But as of 2025, although the New Jersey’s minimum wage rates has increased, the salary thresholds for exempt status has not been raised.

Historical Data of New Jersey Minimum Wages

Since the very beginning, New Jersey has followed the federal minimum laws, which remained stagnant at $7.25 per hour. It was not until 2019 that the state enacted gradual and incremental increases in minimum wage rates from $8.85 to $15 by 2024, to accommodate the rising inflation. This move improved the earning capacity of minimum wage workers and in turn positively impacted their physical and mental health. While many argued that such an increase would lead to reduced employment due to the increased burden on employers, the effect was substantial considering the greater good.  

The table below details an incremental increase in minimum wages in New Jersey between 1968 to 2024. 

Exemptions In Minimum Wages Of New Jersey  

Here’s a list of all employees that fall into the exempt category.  

• Tipped workers 
• Seasonal employees who work for less than six weeks for an employer  
• Student workers employed by the college or university, and are entitled to receive 85% of the minimum wage 
• Outside salespeople responsible for getting orders or contracts, and engaged in regular and customary travels    
• Caretakers tending to children in the home of the employer 
• Minors under 18 years 
• Individuals working for religious organizations .

Overtime And Penalty  

As established earlier, non-exempt employees are eligible to receive overtime pay at the rate of 1.5 times their regular pay for all hours worked beyond 40 per week. However, this condition does not apply if specific guidelines have already been defined by the employer. Moreover, executive, administrative, and professional (EAP) employees, farm labor and limousine drivers are exempt from overtime pay. 

Employers who fail to provide the minimum wage pay are subject to violation of the state minimum wage rules and can be fined between $100 and $1000. In addition, or otherwise, the Commissioner can impose administrative fines up to $250 for a first violation and up to $500 fee for each subsequent violation. Employers may also be asked to pay the Commission an administrative fee of 10% to 25% of any payment that they owe to employees.