New Jersey Minimum Wage 2026 and 2027: $15.92 Now, $16.48 on January 1
New Jersey Minimum Wage 2026 and 2027: $15.92 Now, $16.48 on January 1
New Jersey's general minimum wage is $15.92 an hour in 2026. On January 1, 2027, it rises to $16.48. The state also sets separate rates for small and seasonal employers, agricultural workers, long-term care direct care staff, and tipped employees. If you run a business in New Jersey or are about to form one, you need the exact figure for each category, not just the headline number.
This guide covers the 2026 rates now in effect, the 2027 rates announced on September 29, 2026, how the tipped wage works, and what to do before the new year. Confirm every figure with the New Jersey Department of Labor and Workforce Development (NJDOL) before you set payroll.
2026 and 2027 Rates at a Glance
| Worker category | 2026 hourly rate | 2027 hourly rate (effective January 1, 2027) |
|---|---|---|
| General minimum wage | $15.92 | $16.48 |
| Small employers (fewer than 6 employees) and seasonal employers | $15.23 | $16.25 |
| Agricultural (farm) workers, hourly or piece-rate | $14.20 | $15.00 |
| Long-term care direct care staff | $18.92 | $19.48 |
| Tipped employees, cash wage | $6.05 | $6.61 |
| Tipped employees, maximum tip credit | $9.87 | $9.87 |
The general rate goes up $0.56 an hour. The small and seasonal rate goes up $1.02, the farm rate goes up $0.80, and the long-term care rate goes up $0.56. The tipped cash wage also goes up $0.56, while the maximum tip credit stays the same.
General Minimum Wage: $15.92 in 2026, $16.48 in 2027
The general rate of $15.92 applies to most hourly employees in 2026. Any worker who does not fall into one of the special categories in this guide must be paid at least the general rate. Starting January 1, 2027, the floor for those workers is $16.48.
Build the new rate into your payroll system before the first pay period of 2027. Do not wait for an employee to ask. If you pay on a fixed schedule, check the first pay period that begins after January 1 and confirm that the rate has changed.
Small and Seasonal Employers
Employers with fewer than 6 employees may pay $15.23 an hour in 2026 and $16.25 an hour in 2027. Seasonal employers fall under the same lower rate. The state's small and seasonal rates are set below the general rate for now, but they are scheduled to catch up to the general rate in 2028.
Two questions decide whether you can use this rate, and both need confirmation before you rely on them:
- Headcount: Ask NJDOL how part-time staff, family members and owners are counted toward the 6 employee threshold.
- Seasonal status: Ask NJDOL whether your operation qualifies as seasonal before you pay the seasonal rate. If you guess wrong, you may owe the difference as back wages.
If you are forming a new business, your headcount may change quickly. Recheck your rate category every time you hire, and do not assume the small employer rate stays in place as you grow.
Tipped Employees and the Tip Credit
Tipped workers are paid under a split structure. The employer pays a cash wage and claims a tip credit for the balance of the minimum. In 2026, the cash wage is $6.05 an hour and the maximum tip credit is $9.87. Together they equal the $15.92 general rate. In 2027, the cash wage rises to $6.61 and the maximum tip credit stays at $9.87. Together they equal the $16.48 general rate.
The tip credit is a maximum, not a guarantee. If an employee's tips plus the cash wage do not add up to the full minimum for the hours worked, you must make up the shortfall. Tip income that is high in a busy week does not cover a slow week's gap.
To use the tip credit safely:
- Track hours and tips for every tipped employee, so you can show how each paycheck was calculated.
- Calculate the shortfall for each pay period, not just at year end.
- Confirm with NJDOL which duties qualify for the tip credit before you assign non-tipped work to a tipped employee.
Agricultural Workers
Agricultural workers, paid by the hour or by piece-rate, have their own floor of $14.20 an hour in 2026 and $15.00 an hour in 2027. Farm rates are scheduled to catch up to the general rate in 2030. Whether a particular operation counts as agricultural is a question for NJDOL. Do not assume that a food business, a garden center or a farm stand falls under the farm rate.
Long-Term Care Direct Care Staff
Direct care staff in long-term care settings have the highest minimum in this guide: $18.92 an hour in 2026 and $19.48 an hour in 2027. If you operate or staff a care setting, confirm with NJDOL which positions fall under this category before you set pay for each role.
After 2027: Catch-Up Dates and Annual Inflation Adjustments
The 2027 figures are not the final word. The small and seasonal rates are scheduled to catch up to the general rate in 2028. The farm rates are scheduled to catch up to the general rate in 2030. Beyond 2027, the rates rise each year with the consumer price index (CPI) under Article 1, Paragraph 23 of the New Jersey Constitution.
For planning, that means you should budget for an annual increase rather than treat $16.48 as a fixed number for several years. Check NJDOL each fall for the next year's announced rates.
What Employers Should Do Before January 1, 2027
- Sort every employee into a rate category. Use the general, small or seasonal, farm, long-term care, or tipped categories above, and write down the reason for each assignment.
- Resolve borderline cases early. Ask NJDOL about headcount, seasonal status, farm classification and care staff classification before the new rates take effect.
- Update payroll software and rate tables. Load the $16.48 general rate and the other 2027 figures before the first 2027 pay period.
- Recalculate tip-credit shortfalls. Confirm that tipped employees' cash wages and tip records support the 2027 split.
- Review open job postings and offers. Any 2027 start date or offer letter that pays below the applicable 2027 rate needs revision.
If You Are Forming a New Jersey Business
Your minimum wage obligations begin when you hire, not when you file formation papers. Forming an LLC or corporation costs $100 for the filing, and the annual report costs $75 each year. Both are filed through the state's business portal.
New Jersey has no state general business license, and counties license nothing. Once your entity exists, you register for taxes and employer withholding through Form NJ-REG with the Division of Revenue and Enterprise Services. That registration produces your New Jersey tax identification number. Your Business Registration Certificate (BRC) is proof of that NJ-REG tax registration. It is not a license. Municipalities may issue their own local licenses and permits, so ask your town clerk what applies to your type of business.
Start with the official filing portal at njportal.com (Online Business Entity Filing). General information about the Division of Revenue and Enterprise Services is at nj.gov/treasury/revenue.
Frequently Asked Questions
Does the 2027 increase apply to current employees?
Yes. The 2027 rates apply to every covered employee starting January 1, 2027, including people you hired before the increase. Your existing employees do not need to ask for the raise.
Does the tip credit go up in 2027?
No. The maximum tip credit stays at $9.87. The cash wage rises from $6.05 to $6.61, so the total still reaches the general minimum.
Can I pay a seasonal worker $15.23 in 2026?
Only if your business qualifies as seasonal under the state's rules. Confirm your status with NJDOL before you pay the lower rate. Do not assume eligibility because your business is busy only part of the year.
Where to Confirm Your Numbers
Check the New Jersey Department of Labor and Workforce Development at nj.gov/labor for the official rate notice and any updated guidance on categories. Tax questions about tipped income and withholding go to the New Jersey Division of Taxation at nj.gov/treasury/taxation.
Disclaimer: This guide is informational content, not legal, tax, or payroll advice. Minimum wage rules have exceptions and details that depend on your facts. Consult a qualified employment attorney or certified public accountant (CPA) for complex situations, such as mixed tipped and non-tipped roles, disputed back wages, or employees who work in more than one state.