New Jersey’s minimum wage will increase to $12 per hour January 1
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Thursday, October 15, 2020

New Jersey’s minimum wage will increase to $12 per hour January 1

By Payroll and Entitlements Editorial Staff

New Jersey’s minimum hourly wage will go up by $1 to $12 per hour, for most employees, on January 1, 2021, according to the state Department of Labor and Work force Development (NJDOL) in a recent announcement.

The minimum hourly wage for employees of a small employer or those engaged in seasonal work will increase to $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.

The wage increases for 2021 are part of a series of scheduled wage increases. In February 2019, Governor Phil Murphy signed legislation (A. 15) that incrementally increases the minimum hourly wage to $15 (in 2024) for most employees, but gives seasonal, small, and agricultural employers more time to reach the new minimum threshold.

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 September 30 and that the notice later be published in the New Jersey Register.

Once the minimum wage reaches $15 per hour, the state Constitution specifies that it continue to increase annually based on any increase in the Consumer Price Index. (State of New Jersey, Department of Labor and Workforce Development, Press Release, September 30, 2020).

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