As the year comes to a close, New Jersey businesses need to be mindful of the yearly increases in state minimum wage rates.  The New Jersey Department of Labor announced in a press release that effective January 1, 2025, the state minimum wage rate for most employees will increase by $0.36 to the new rate of $15.49.  The minimum wage rate is not the only increase at the state level; also rising will be the maximum benefit rate for Unemployment Insurance Claims, the maximum weekly benefit rate for state plan Temporary Disability and Family Leave Insurance claims, and the maximum weekly Workers’ Compensation benefit rate for temporary disability, permanent total disability, and permanent partial disability and dependency.  The full press release can be found here: Department of Labor and Workforce Development | NJ Department of Labor and Workforce Development Announces New Benefit Rates for 2025.      

New Jersey also maintains separate minimum wage rates for certain other employees.  For example, agricultural workers are governed by a separate schedule; the minimum wage for employees who work on a farm for an hourly or piece rate wage will see their minimum wage rise to $13.40.  Employees who work for seasonal and small employers will see their minimum wage rise to $14.53.  Long-term care facility direct care staff will also see an increase in their minimum wage to $18.49.  And, tipped workers will see their minimum wage rate rise to $5.62, while the maximum tip credit employers are able to claim will remain at $9.87.   

New Jersey employers should be well aware that failure to pay the correct minimum wage to its employees can carry stiff penalties under the state wage and hour laws.  Therefore, full compliance with state wage and benefit laws is a must for any business operating in the Garden State.

For more information about this alert, please contact Ian Gillen at 609.895.7066 or igillen@foxrothschild.com, or any member of the firm’s national Labor & Employment Department.