New Jersey Minimum Wage Increases Effective January 1, 2026

What Employers Need to Know and Where to Learn More

As of January 1, 2026, New Jersey employers must update payroll practices to comply with new minimum wage rates that affect most workers — including general employees, tipped workers, agricultural workers, and long-term care staff. These changes are part of New Jersey’s ongoing strategy to align wages with inflation and cost-of-living increases under state law. https://www.nj.gov/labor/lwdhome/press/2025/20251001_Minimum_Wage.shtml

Updated Minimum Wage Rates

Here’s a breakdown of the new hourly wage standards that take effect on January 1, 2026:

• General Minimum Wage: $15.92 per hour for most employees — up from $15.49/hour in 2025.
• Small & Seasonal Employers: $15.23 per hour for employers with fewer than six employees and seasonal employees.
• Agricultural Workers: $14.20 per hour (continuing scheduled increases through 2030).
• Tipped Employees: Employers must pay a minimum cash wage of $6.05/hour. If the employee’s tips + base wage don’t meet the full minimum wage, employers must make up the difference. saiber.com
• Long-Term Care Direct Care Staff: $18.92 per hour, reflecting a separate state requirement aimed at addressing caregiver turnover.

Why This Matters for Employers

These adjustments are not optional; they are mandated under New Jersey’s wage laws and enforced by the New Jersey Department of Labor and Workforce Development (NJDOL).

Key Compliance Steps

To stay compliant, HR and payroll teams should:

• Update payroll systems to ensure the new hourly rates are used for all relevant classifications.
• Review job classifications to confirm employees are properly categorized under general, small/seasonal, agricultural, tipped, and long-term care categories.
• Recalculate tip credits, ensuring that tipped employees’ base wages plus tips equal or exceed the full minimum wage each pay period.
• Communicate changes to affected employees and document the wage updates in personnel/payroll records.

Official Resources for Employers

Here are some authoritative sources to help HR professionals understand and implement the new wage requirements:

Government Sources

• NJ Department of Labor & Workforce Development — Press Release: Official announcement of the minimum wage increase.
  👉 Visit: New Jersey DOL Minimum Wage Release — NJ.gov press (Oct 1, 2025) NJ.gov
• NJ Wage & Hour Compliance Flyer: Official wage chart and summaries.
  👉 Download the NJDOL Minimum Wage PDF — NJ.gov flyer MW-571 (updated for 2026) NJ.gov
• NJ Wage & Hour FAQs: Answers to common employer questions — including tipped wage rules and scheduled increases.
  👉 NJ Wage & Hour FAQs — NJ.gov wage & hour support FAQs NJ.gov

Legal & HR Analysis

These law firm articles explain the increases in employer-friendly language and provide context for compliance planning:

• Saiber LLC Insight: Detailed overview of the New Jersey minimum wage increase, including small/seasonal, agricultural, tipped wage, and direct care staff provisions. JD Supra
• Fisher Phillips Employers Alert: Summary of the new minimum wages and practical next steps for employers to comply. Fisher Phillips
• Seyfarth Shaw Update for Employers: A timely overview of minimum wage changes and payroll considerations for HR teams. Seyfarth Shaw - Homepage

Final Thoughts

With these wage increases now in effect, employers in New Jersey should act promptly to update wage scales, payroll systems, and employee communications. Staying ahead of compliance not only reduces legal risk, it also supports fair compensation practices that contribute to employee retention and satisfaction.