Record Hourly Minimum Wage Takes Effect For Most NJ Workers In 2024

NEW JERSEY — The statewide minimum wage in New Jersey will reach a record high in 2024, increasing by $1 to $15.13 per hour for most workers according to state officials.

And once the minimum wage reaches $15.13, it will continue to increase each year – either based on inflation, or using the rate specified in legislation that Gov. Phil Murphy signed in 2019.

“As we approach this long-awaited benchmark, I am hopeful that New Jersey workers will be able to improve their quality of life and secure a better future for their families in the middle class,” Murphy said. “Our Administration will continue to prioritize our workers, who are the backbone of our economy.”

The now term-limited Democrat promised to raise the state’s minimum wage when he was campaigning for governor; it was $8.60 per hour when he took office in 2018.

Under the law he signed in 2019, the New Jersey Department of Labor sets state minimum wage each year - either calculating it based on the Consumer Price Index, or according to the rate set out in the law (whichever is a higher amount).

Most employers have seen a $1 per hour increase since January 1, 2020. However, inflation raised the minimum wage an extra 13 cents in 2023.

“This is a proud moment for New Jersey as we prepare to become one of only a handful of states with a minimum wage above $15 an hour,” said Labor Commissioner Robert Asaro-Angelo.

New Jersey joins four other states (California, Connecticut, Massachusetts, and Washington) with minimum wage of $15 per hour or above.

Who is not affected?

The minimum wage increase affects most employers and workers in New Jersey, but there are some exceptions.

Seasonal and small employers were given until 2026 to reach the $15 per hour benchmark, as state officials said this will lessen the impact on local businesses. In 2024, minimum wage for these businesses will go up $1 to $12.93 per hour.

Agricultural workers are guided by a separate minimum wage timetable, and were given until 2027 to reach the $15 per hour minimum wage. The hourly rate for these workers will increase from $11.05 to $12.01 in 2024. And long-term facility direct care staff will see their minimum wage rise by $1, up to $18.13 per hour, the state said.

And, cash wage for tipped workers will remain at $5.26/hour, with employers able to claim a $9.87 tip credit (an increase 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.