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NJ Minimum Wage Increase Adjusted for 2023

September 20, 2022 | posted by Abacus Payroll

Most New Jersey business owners are already aware that employers have been on a trajectory towards a $15.00 an hour minimum wage rate, with a $1.00 increase scheduled for each January 1st. On September 20, 2022, the New Jersey Department of Labor announced that the minimum wage rate scheduled to go into effect for January 1, 2023 will be slightly adjusted to account for inflation.
 

What is the New NJ Minimum Wage Rate?

As of January 1, the statewide minimum wage for most employees will be $14.13 per hour. This is a $1.13 increase from 2022’s minimum wage of $13.00 per hour. This is also a raise from the anticipated 2023 minimum wage rate of $14.00 per hour.

See Also:



NJ Minimum Wage increases to $14.13

Exceptions for NJ Minimum Wage

Seasonal and small businesses (fewer than 6 employees) will see their minimum wage increase to $12.93/hour on January 1, 2023, up from $11.90.

The rate for agriculture workers will see a raise in minimum hourly wage from to $12.01, up from $11.05. Agricultural employers were given until 2027 to reach the $15.00 per hour wage rate to help lessen the impact on their businesses.

Tipped workers’ cash wage will increase to $5.26/hour, with employers able to claim an $8.87 tip credit, an increase in the maximum allowable tip credit of $1.00.


NJ Minimum Wage for Seasonal, Small, and Agricultural Employers

Most employees have minimum wage protection under state law. There are exceptions, such as automobile salespersons, outside salespersons, and minors under the age of 18, except for minors working in retail, food service, the first processing of farm products, beauty culture occupations, laundry, cleaning and dyeing occupations, light manufacturing and apparel occupations, and hotel and motel occupations.

Background

Back in early 2019, Governor Murphy signed into law a bill that would institute a phase-in schedule of moderate increments to raise the statewide minimum wage from $8.85 per hour in 2019 to $15.00 per hour by 2024 (2026 for seasonal and very small businesses; 2027 for agriculture).

While the rates for 2019-2027 were published ahead of time, the state law allowed flexibility in event of significant changes in the Consumer Price Index (CPI), which did occur in 2022. Once the minimum wage reaches $15 per hour, the state Constitution specifies that it will continue to increase annually based on any increase in the CPI.

The federal minimum wage remains $7.25 per hour.
 

Summary of 2023 New Jersey Minimum Wage Rates

Type of Workforce New Rate for 2023 Original Rate for 2023 Current Rate for 2022
Most Employees $14.13 14.00 13.00
Seasonal and Small Business $12.93 12.70 11.90
Agriculture $12.01 11.70 11.05
Tipped Workers $5.26 5.13 5.13

 

Get a Quote from Abacus Payroll

At the end of every year, Abacus Payroll releases a Payroll Tax Alert, which summarizes all of the tax and wage rate information that NJ and PA employers need to be aware of at the start of each new calendar year. To be informed as soon as the Alert is published, sign up to receive email notifications from Abacus Payroll, Inc.

Abacus Payroll’s professionals pride ourselves on bringing you the latest and most accurate updates that you need to successfully run your small business. Contact us for a no-obligation quote and start the new year with a friendly payroll team that keeps looking out for your best interests. Fill out our contact form or give us a call at 856.667.6225.

 


About the Author: Abacus Payroll

Abacus Payroll, Inc. is a leading provider of payroll solutions for businesses of all sizes. Whether yours is a family-owned small business or a national corporation, we provide payroll, tax and other financial services on time and at an affordable price. Unlike other payroll providers, Abacus Payroll will assign your very own payroll specialist who will understand your payroll needs inside and out. So no more speaking to a different person each time, no more sitting on hold for hours and most importantly no more missed deadlines! Contact us today to see how we can help your business. You can count on us.