As we previously anticipated in our March 2014 New Jersey eAuthority, the bill (S1595) seeking to increase the state minimum wage for tipped employees was amended by the Assembly (A857) to reflect implementation dates in 2014 and 2015. As now written, the bill would effectively require employers to compensate their employees at an hourly rate of at least 40 percent of the minimum wage for work performed after December 31, 2014, and an hourly rate of at least 69 percent of the minimum wage for work performed after December 31, 2015, and beyond. The remainder of the employee’s compensation may be comprised of tips or gratuities, as long as the employee earns at least the minimum hourly wage rate.

Note: This article was published in the May 2014 issue of the New Jersey eAuthority.


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