Minimum Wage Increase Set for Jan 1, 2021

New Jersey’s minimum hourly wage will go up by $1 to $12 per hour, for most employees, on January 1, 2021, per the state Department of Labor and Workforce Development.

Increases are less if you are a small employer or operate a seasonal business, which makes $11.10, while employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $10.44, both rising from $10.30.

This was established February 2019, Gov. Phil Murphy signed a law that incrementally increases the minimum hourly wage to $15 (by 2024) for most employees, but gives seasonal, small, and agricultural employers more time to reach the new minimum threshold. Cash Wage for Tipped workers increases to $4.13 per hour.

The New Jersey Wage and Hour Law, as amended in 2019, requires NJDOL to revise the minimum hourly wage rates annually by either the amount specified in the law, or by an amount based on any increase from the prior year in the Consumer Price Index, whichever is higher. NJDOL regulations require the Department to publish notice of the new minimum hourly wage rates on its website by Sept. 30 and that the notice later be published in the New Jersey Register.

Businesses should check with their accountant or payroll service on what increase should be applied. For more information, see wage chart below or go directly to Department of Labor and Workforce website here