{"id":33413,"date":"2008-03-26T16:35:41","date_gmt":"2008-03-26T21:35:41","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/uncategorized\/new-jersey-raises-minimum-wage.html"},"modified":"2008-03-26T16:35:41","modified_gmt":"2008-03-26T21:35:41","slug":"new-jersey-raises-minimum-wage","status":"publish","type":"corporate","link":"https:\/\/corporate.findlaw.com\/human-resources\/new-jersey-raises-minimum-wage.html","title":{"rendered":"New Jersey Raises Minimum Wage"},"content":{"rendered":"<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    <p><em>This article was edited and reviewed by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw Attorney Writers<\/a><\/em><\/p>\n\n                | Last reviewed\n        <time>\n                            May 07, 2026\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\" rel=\"noopener\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\" rel=\"noopener\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\" rel=\"noopener\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n\n\n\n<div class=\"rxbodyfield\" xmlns:o=\"urn:www.microsoft.com\/office\" xmlns:st1=\"urn:www.microsoft.com\/smarttags\" xmlns:w=\"urn:www.microsoft.com\/word\" xmlns:x=\"urn:www.microsoft.com\/excel\"><p align=\"left\" class=\"MsoNormal\">On April 12, 2005, Acting Governor Richard J. Codey signed a bill into law which will increase New Jersey&#39;s minimum hourly wage to $7.15 over the next two years, $2.00 higher than the current federally-mandated $5.15 minimum hourly wage.&#160; The New Jersey minimum wage will increase to $6.15 per hour on October 1, 2005, and then to $7.15, effective October 1, 2006.&#160; <a id=\"OLE_LINK1\" name=\"OLE_LINK1\">The new wage rates apply to all categories of employees currently covered under New Jersey law and do not change an employer&#39;s recordkeeping requirements or the method for calculating overtime.<\/a><\/p><p align=\"center\" class=\"MsoNormal\"><b>Minimum Wage Advisory Committee to Annually Review NJ Minimum Wage<\/b><\/p><p class=\"MsoNormal\">The new law also requires the creation of the &quot;New Jersey Minimum Wage Advisory Commission&quot; (&quot;Commission&quot;).&#160; This five-member Commission, which will be a permanent, independent body within the NJ Department of Labor and Workforce Development, must annually evaluate the adequacy of New Jersey&#39;s minimum wage relative to the following factors:<\/p><ul type=\"disc\"><li class=\"MsoNormal\">the overall cost of living in the state;<\/li><li class=\"MsoNormal\">changes in the components of the cost of living which have the greatest impact on low-income families, including increases in the cost of housing, food, transportation, health care and child care;<\/li><li class=\"MsoNormal\">the cost of living in the state compared to that of other states;<\/li><li class=\"MsoNormal\">changes in the purchasing power of the minimum wage; and<\/li><li class=\"MsoNormal\">changes in the value of the minimum wage relative to the federal poverty guidelines, the federal lower living standard income level guidelines and the self-sufficiency standards established as goals for state and federal employment and training services.<\/li><\/ul><p class=\"MsoNormal\">The Commission must then submit a written report of its findings, along with its recommendations for any increases, to the Governor and to the Legislature.&#160; The Legislature must consider the Commission&#39;s report within 120 days of receiving the report.&#160; The Commission&#39;s first report is due to the Legislature between October 1, 2007 and December 31, 2007, with subsequent reports submitted in one-year intervals.<\/p><p align=\"center\" class=\"MsoNormal\"><b>Impact on &quot;Tipped&quot; Employees<\/b><\/p><p class=\"MsoNormal\">New Jersey-based employers may continue to pay tipped employees less than the minimum wage, provided the tips, in addition to the hourly rate, bring an employee&#39;s rate of pay to at least the current minimum wage.&#160; For example, an employer paying tipped employees the federal cash wage rate of $2.13 per hour must demonstrate that the total pay is at least equal to the set minimum hourly rate of pay.&#160; In other words, employers must demonstrate that<\/p><ul type=\"disc\"><li class=\"MsoNormal\">as of October 1, 2005,&#160; $2.13 in wages + tips = $6.15 minimum rate, and<\/li><li class=\"MsoNormal\">as of October 1, 2006,&#160; $2.13 in wages + tips = $7.15 minimum rate.<\/li><\/ul><p align=\"center\" class=\"MsoNormal\"><b>No Prohibition Against Establishing Higher Wage Rate Standards<\/b><\/p><p class=\"MsoNormal\">Any political subdivision in New Jersey may adopt an ordinance, resolution, regulation or rule or enter into any agreement establishing any standard for vendors, contractors and subcontractors of the subdivision&#160; regarding wage rates or overtime compensation which is higher than the standards provided under the new state minimum hourly wage rates.<\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>On April 12, 2005, Acting Governor Richard J. Codey signed a bill into law which will increase New Jersey&#8217;s minimum hourly wage to $7.15 over the next two years, $2.00 higher than the current federally-mandated $5.15 minimum hourly wage.&nbsp; The New &#8230;<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_categories":[6487,6486],"class_list":["post-33413","corporate","type-corporate","status-publish","hentry","corporate_categories-human-resources__employment-laws","corporate_categories-human-resources"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate\/33413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=33413"}],"wp:term":[{"taxonomy":"corporate_categories","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_categories?post=33413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}