New Jersey increased its minimum wage as of January 1, 2014, which is more than the federal minimum wage. Don’t make the mistake of paying below the minimum.
The federal minimum wage is $7.25 per hour. However, states are also permitted to set a minimum wage. Whichever minimum is higher controls.
Federal minimum wage laws stipulate that tipped workers must be paid a minimum of $2.13 per hour, as long as the hourly wage plus tips equals minimum wage.
Effective January 1, 2014, New Jersey minimum wage is $8.25 per hour. Because New Jersey’s minimum wage is higher than the federal minimum wage, $8.25 is the statutory minimum an employee in New Jersey must be paid.
In New Jersey, tipped workers must likewise be paid a minimum of $2.13 per hour, provided the hourly wage plus tips equals at least $8.25.
Be aware that minimum wages differ from state to state. They can be as low as $7.25, the federal statutory minimum, or as high as $9.32, the minimum wage in Washington State. Many states have recently increased their minimum wages, as well. If you are looking to hire, or have already hired, minimum-wage workers, or are considering expanding your business to other states, be sure to research that state’s minimum wage beforehand. Mistakes can be costly.