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Minimum Wage in New Jersey: $15.92 in 2026 and $16.48 From January 2027

The minimum wage in New Jersey is $15.92 an hour for most employees as of October 2026. It rises by $0.56 to $16.48 an hour on 1 January 2027, and small, seasonal, farm and tipped workers each have their own rate.

This page uses the New Jersey Department of Labor and Workforce Development's own announcements for 2026 and 2027, plus the U.S. Department of Labor's state tables, all checked in October 2026. New Jersey is a state where you can't quote one number, because there are five.

New Jersey minimum wage rates for 2026 and 2027

Type of employeeRate in 2026Rate from 1 January 2027
Most employees$15.92$16.48
Seasonal employees and employers with fewer than 6 employees$15.23$16.25
Farm workers paid hourly or piece rate$14.20$15.00
Tipped workers, minimum cash wage$6.05$6.61
Long-term care facility direct care staffSeparate higher rate$19.48

The state confirmed the 2027 figures on 29 September 2026. If you run payroll, put the new rates into your system now so the first January pay run is right.

Why New Jersey's rate keeps rising

New Jersey's Constitution, Article 1, Paragraph 23, requires the minimum wage to be adjusted every year based on any increase in the Consumer Price Index from the U.S. Bureau of Labor Statistics. So the rate doesn't wait for a new law. It moves each January with inflation.

On top of that, two groups are still on a catch-up schedule. Small and seasonal employers finish their statutory increases in 2028, and farm workers paid hourly or piece rate finish in 2030. After that, those rates rise each year with the same inflation formula as everyone else.

The milestone for farm workers

1 January 2027 is the first time farm employees working for an hourly or piece-rate wage reach the $15 benchmark, up from $14.20. That's the end of a long timetable set by a 2019 law, and it's the one change in the 2027 announcement that most employers outside agriculture won't have noticed.

How tipped pay works in New Jersey

In 2026 an employer can pay tipped staff a minimum cash wage of $6.05 an hour and claim a maximum tip credit of $9.87. In 2027 the cash wage rises to $6.61 and the tip credit stays at $9.87. If the cash wage plus tips doesn't reach the state minimum wage, the employer has to pay the difference.

New Jersey adds conditions the federal rules don't. The Department of Labor notes that an employer can only take the tip credit if tipped employees have been told in advance:

  1. the amount of the cash wage they'll be paid
  2. the amount of the tip credit the employer is claiming
  3. that they keep all their tips, apart from a valid tip pool limited to tipped employees
  4. the requirements of the relevant New Jersey regulations

Skip that notice and the tip credit isn't available. Under New Jersey's definition, a tipped employee is someone who gets more than $30 a month in tips. If you pool tips, my tip pooling guide covers the basics.

How far New Jersey has come

YearNew Jersey minimum wage (most employees)
2018$8.60
2020$11.00
2022$13.00
2024$15.13
2026$15.92
2027$16.48

When the 2019 law was signed, the state rate was $8.60. It reached $15.13 on 1 January 2024 for most employees, and since then inflation has done the rest.

Long-term care direct care staff

New Jersey sets a separate, higher floor for direct care staff at long-term care facilities. Their minimum hourly wage rises by $0.56 to $19.48 on 1 January 2027. If you run a care home, that's the rate to budget for, not the general $16.48.

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How New Jersey compares with its neighbours

StateBasic minimum wage (as of October 2026)
New Jersey$15.92 for most employees
New York$17.00 in New York City, Long Island and Westchester; $16.00 elsewhere
Delaware$15.00
Pennsylvania$7.25

The gap with Pennsylvania is the striking one: a business with staff on both sides of the Delaware River can be paying more than twice as much per hour in New Jersey. My New York minimum wage guide covers the regional rates there.

Overtime

The U.S. Department of Labor lists New Jersey's premium pay rule as weekly, after 40 hours. For the general rules on who qualifies, see my overtime laws guide.

What New Jersey employers should do now

  • Work out which rate applies to each employee: most, small or seasonal, farm, tipped or long-term care.
  • Count employees carefully. The small employer rate only applies with fewer than 6.
  • Update payroll for 1 January 2027 before the first pay run of the year.
  • Give tipped staff the written notice New Jersey requires before taking any tip credit.
  • Check every pay period that tipped staff reach the full minimum with tips.

My verdict

New Jersey is one of the most organised states on minimum wage: it tells you next year's rate in the autumn and the rise follows a clear formula. The risk isn't surprise, it's picking the wrong one of five rates. Small businesses with 6 or more staff are on the full $15.92, not the small employer rate, and that's an easy and expensive mistake to make.

Frequently asked questions

What is the minimum wage in New Jersey in 2026?

It's $15.92 an hour for most employees, $15.23 for seasonal staff and employers with fewer than 6 employees, and $14.20 for farm workers paid hourly or piece rate.

What will New Jersey's minimum wage be in 2027?

From 1 January 2027 it's $16.48 for most employees, $16.25 for small and seasonal employers and $15 for farm workers paid hourly or piece rate.

What's the tipped minimum wage in New Jersey?

The minimum cash wage is $6.05 an hour in 2026 and $6.61 from 1 January 2027, with a maximum tip credit of $9.87.

Why does New Jersey's minimum wage go up every year?

The state Constitution requires an annual adjustment based on any increase in the Consumer Price Index.

Who counts as a small employer in New Jersey?

For the minimum wage, it's an employer with fewer than 6 employees.

When will small employers in New Jersey catch up with the main rate?

Their statutory increases finish in 2028, after which their rate rises each year with inflation like everyone else's.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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