New Jersey Minimum Wage Rate to Increase on January 1, 2026

Quick Hits

• Starting January 1, 2026, New Jersey’s minimum wage rate will increase from $15.49 per hour to $15.92 per hour, representing a nearly 3 percent increase.
• The minimum wage for seasonal and small business employees will rise from $14.53 per hour to $15.23 per hour, and the minimum wage rate for agricultural workers will increase from $13.40 per hour to $14.20 per hour.
• Employers may want to review and adjust their compensation structures in light of the upcoming minimum wage increases.

On October 1, 2025, the New Jersey Department of Labor and Workforce Development (NJDOL) released the new minimum wage rates that will take effect on January 1, 2026. The hourly minimum wage will increase by $0.43, a nearly 3 percent increase from the prior year. The minimum wage for seasonal employees and small business employees will increase to $15.23 per hour from $14.53.

Under the New Jersey Constitution and the state minimum wage law (N.J.A.C. 12: 56-3.1(c)), NJDOL must annually adjust the minimum wage rate based on Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics.

The minimum cash wage rate for tipped workers will increase to $6.05 per hour, up from $5.62 per hour. The maximum tip credit that employers will be allowed to claim will remain at $9.87. If the minimum cash wage plus a tipped employee’s tips does not equal at least the state minimum wage rate, then employers must pay the difference.

According to NJDOL, the minimum wage rate for agricultural workers, which is guided by a separate minimum wage timetable calling for gradual increases until 2030, will increase to $14.20 per hour in 2026, up from $13.40 per hour. Further, the hourly minimum wage rate for long-term care facility direct staff will rise to $18.92 per hour, up from $18.49 per hour.

New Jersey’s latest minimum wage increase comes as the rate has nearly doubled since 2018, when it was $8.60 per hour. In February 2019, New Jersey enacted legislation to gradually increase the hourly minimum wage rate to $15.00 per hour by 2024, with annual increases thereafter based on changes in the CPI.

Next Steps

New Jersey employers may want to begin preparations to ensure that their compensation structures comply with the new minimum wage rates for 2026. Further, employers may want to note the new tax deduction that tipped employees can claim for their tips, which covers some employees who traditionally might not be considered in tipped occupations, and the corresponding changes to the tax forms.

Ogletree Deakins’ Morristown office will continue to monitor developments and will provide updates on the New Jersey and Wage and Hour blogs as additional information becomes available.

Further information on minimum wage rates and requirements can be found in the Ogletree Deakins Client Portal, including minimum wage and minimum wage tip credit law summaries. (Full law summaries are available for Premium-level subscribers; Snapshots and Updates are available for all registered client-users.) For more information on the Client Portal or a Client Portal subscription, please reach out to clientportal@ogletree.com.

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