New Jersey Minimum Wage 2026: What Employers Owe

The New Jersey minimum wage in 2026 is $15.92 per hour, above the federal minimum wage of $7.25, according to the U.S. Department of Labor.

New Jersey adjusts its rate annually and carries a separate rate for small and seasonal employers. Employers running payroll in New Jersey need to apply the right rate to the right workforce.

New Jersey Minimum Wage vs. Federal Minimum Wage

Because New Jersey's standard rate adjusts annually by formula, employers should re-verify the $15.92 figure at the start of each year rather than treating it as a permanent number carried forward from 2026.

Small-Employer Rate in New Jersey

New Jersey sets a $15.23 rate for employers with fewer than 6 employees and for seasonal work. Employers should confirm their headcount and whether their work qualifies as seasonal before applying the reduced rate rather than the standard $15.92 rate.

This distinction matters most for small businesses that grow during the year. An employer that starts the year with 5 employees and hires a sixth partway through moves out of the small-employer rate and into the standard rate at that point, which means payroll needs to reflect the change immediately rather than at the next scheduled wage review.

Overtime Rules in New Jersey

New Jersey follows a weekly overtime standard. Nonexempt employees who work more than 40 hours in a workweek are owed 1.5x their regular rate of pay for every hour beyond 40.

The regular rate calculation must include all non-discretionary compensation earned in the workweek, not just the base hourly wage, whether the employee is paid the standard rate or the small-employer and seasonal rate discussed above.

Paid Sick Leave and Paid Family Leave in New Jersey

New Jersey requires paid sick leave for employees and administers a state paid family and medical leave program funded through payroll contributions. Employers need both sick time accrual tracking and paid family leave contribution withholding and remittance built into payroll.

These are two separate compliance tracks. Paid sick leave is typically accrued based on hours worked and administered directly by the employer. Paid family leave, by contrast, functions more like a payroll tax, with contributions calculated, withheld from wages, and remitted to the state on a defined schedule. Employers who treat these as a single combined leave benefit risk missing the contribution and remittance side of the paid family leave program entirely.

Tipped Wages and Local Ordinances

Tipped employee wage calculations and any local ordinances in New Jersey can vary and can change. Before running payroll for tipped staff, verify current requirements through the U.S. DOL state labor office contacts directory.

Tip credit reconciliation should happen every pay period against whichever wage rate applies to the specific employer, standard or small-employer and seasonal, since applying the wrong base rate compounds into an incorrect tip credit calculation as well.

What This Means for Payroll Compliance

An annually adjusted wage rate, a separate small-employer and seasonal rate, mandatory paid sick leave, and a payroll-funded paid family leave program add up to significant compliance surface area for New Jersey employers. Applying the wrong rate to a small or seasonal workforce, or missing a paid family leave contribution, creates direct financial exposure.

For multi-state employers, New Jersey's combination of a dual wage rate structure and payroll-funded leave contributions needs to be tracked separately from whatever rules apply in other states where the business operates.

BEG runs payroll for New Jersey employers with correct standard and small-employer wage rates, weekly overtime calculations, and both paid sick leave and paid family leave contributions handled on every run, all included in a single all-inclusive PEPM rate.

Frequently Asked Questions