IMPORTANT LAW UPDATE FOR ALL EMPLOYERS IN NEW JERSEY
Governor Phil Murphy has signed into law a measure increasing the minimum wage in New Jersey to $15.00 per hour by 2024.
New Jersey joins California, Massachusetts, New York and the District of Columbia in phasing in a $15.00 per hour minimum wage rate.
In July 2019, the minimum wage rate will increase from $8.85 per hour to $10.00 per hour.
After that, the minimum wage rate will increase by $1.00 on January 1st of each year until it reaches $15.00 per hour on January 1, 2024.
In July 2019, the minimum wage rate for tipped employees will increase from $2.13 per hour to $2.63 per hour.
After that, the minimum wage for tipped employees will increase as follows:
o January 1, 2020 – $3.13
o January 1, 2021 – $4.13
o January 1, 2022 – $5.13
o January 1, 2023 – $5.13
o January 1, 2024 – $5.13
Further, a 2013 amendment to New Jersey’s constitution requires the minimum wage rate to increase with inflation. Therefore, once the minimum wage reaches $15.00 and $5.13 in 2024, it will continue to climb based on the consumer price index.