HOURLY WAGE INDEX
Let’s talk wages in New Jersey
What is the minimum wage in New Jersey?
The minimum wage in New Jersey is $15.92 per hour for most employers, effective January 1, 2026. Seasonal employers and small employers with fewer than six workers are subject to a rate of $15.23. Tipped employees must be paid at least $6.05 per hour, but employers must ensure wages and tips combined equal at least the minimum wage.
What is the average wage in New Jersey?
According to the U.S. Bureau of Labor Statistics, the average hourly wage in New Jersey is $35.57. Wages vary by occupation, industry, and location.
What is the living wage in New Jersey?
The estimated living wage in New Jersey is $36.68 per hour. A living wage represents the estimated hourly rate needed to cover basic living expenses, including housing, food, transportation, healthcare, and other essential costs.
A guide to hourly labor laws in New Jersey
● Standard Minimum Wage: $15.92 (N.J. Stat. § 34:11-56a et seq.).
● Tipped Minimum Wage: $6.05, totaling at least minimum wage with tips (N.J. Stat. § 34:11-56a et seq.).
● Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (N.J. Stat. § 34:11-56a4) (29 US Code § 207) (DoL).
● Meal Breaks:
● Adults: No state or federal law requiring meal breaks.
● Minors: Employees under 18 must receive a 30-minute meal break after 5+ hours worked. General: Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL)
● Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
● Wage Deductions: Only those required by law, such as taxes, and those benefiting the employee and authorized in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (NJ DoL) (N.J. Stat. § 34:11-4.4) (29 C.F.R. § 4.168) (29 US Code § 203).
● Final Paychecks: By the next regular payday after resignation or termination (N.J. Stat. § 34:11-4.3).
● Wage Payment Frequency: At least twice monthly (N.J. Stat. § 34:11-4.2).
● Paid Sick Leave: Employees accrue up to 40 hours of paid sick leave annually at a rate of one hour for every 30 hours worked (N.J. Stat. § 34:11D-2).
● Paid Family and Medical Leave: Up to 12 weeks of paid leave under the New Jersey Family Leave Act. This is in addition to FMLA's 12 unpaid weeks of leave (NJFLA) (N.J. Stat. § 43:21-39.1) (FMLA).
● Maximum Daily and Weekly Hours for Children Under 16: All minors must have an employment certificate to work. No working during required school hours. Receive a 30-minute meal break after working five continuous hours. Cannot work more than six consecutive days. Up to three hours per school day and 18 hours per school week. Up to eight hours per non-school day and 40 hours per non-school week. Only between 7 a.m. and 7 p.m., extended to 9 p.m. between June 1 and Labor Day (NJ.gov) (N.J. Stat. § 34:2-21.1 et seq.) (29 C.F.R. § 570.35).
● Maximum Daily and Weekly Hours for Children 16 and 17: All minors must have an employment certificate to work. No working during required school hours. Minors must receive a 30-minute meal break after working five continuous hours. Cannot work more than six consecutive days. Up to eight hours per school day and 40 hours per school week. Only between 6 a.m. and 11 p.m. before school days. Only between 6 a.m. and midnight on days before non-school days. Up to 10 hours per day and 50 per week between the last day of school and Labor Day (NJ.gov) (N.J. Stat. § 34:2-21.1 et seq.) (29 C.F.R. § 570.35).
Frequently asked questions
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:
- Short, easy to understand job descriptions
- Mobile-friendliness
- Quick communication
- Streamlined interview stages
Resources
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