New Jersey Minimum Wage 2027: $16.48 Rates Explained
Quick answer
The New Jersey minimum wage for 2027 is $16.48 an hour for most workers, starting January 1, 2027. Seasonal and small employers (fewer than six employees) must pay at least $16.25, farm workers $15, long-term care direct care staff $19.48, and tipped workers a $6.61 cash wage plus tips.
Key takeaways
Most New Jersey workers will earn at least $16.48 an hour from January 1, 2027, up $0.56 from $15.92.
Employees of seasonal employers and businesses with fewer than six workers get a $1.02 raise, to $16.25 an hour.
Farm workers paid hourly or by piece rate reach $15 an hour for the first time, up from $14.20.
Tipped workers must receive at least $6.61 an hour in cash, and tips must bring total pay to at least $16.48.
The increase is tied to inflation: the CPI-W index rose 3.52 percent between August 2025 and August 2026.
The New Jersey minimum wage 2027 rate is $16.48 an hour for most employees, effective January 1, 2027. The New Jersey Department of Labor and Workforce Development (NJDOL) confirmed the $0.56 raise on September 29, 2026, along with new floors for small businesses, seasonal jobs, farms, tipped work and long-term care. Below is every rate, how it was calculated and what to check on your paycheck.
New Jersey minimum wage 2027: what are the new rates?
From January 1, 2027, most New Jersey employers must pay at least $16.48 per hour, up from $15.92 in 2026. Several groups of workers have their own minimum rates, so the right number depends on who your employer is and what kind of work you do.
Most employees: $16.48 an hour (was $15.92, up $0.56)
Seasonal employers and small employers with fewer than six employees: $16.25 an hour (was $15.23, up $1.02)
Farm workers paid by the hour or by piece rate: $15.00 an hour (was $14.20, up $0.80)
Direct care staff at long-term care facilities: $19.48 an hour (up $0.56)
Tipped workers: a cash wage of at least $6.61 an hour (was $6.05), with a maximum tip credit of $9.87
The general rate and the tipped figures line up exactly: a $6.61 cash wage plus the full $9.87 tip credit equals $16.48.
How much is the NJ minimum wage increase, and why is it $0.56?
The general increase is $0.56 an hour because New Jersey ties its minimum wage to inflation. Under Article 1, Paragraph 23 of the New Jersey Constitution and state regulations, NJDOL must adjust the rate each year in line with any rise in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the U.S. Bureau of Labor Statistics.
The state's official notice shows the math. The CPI-W rose from 317.306 in August 2025 to 328.481 in August 2026, an increase of 3.52 percent. Applying 3.52 percent to the 2026 rate of $15.92 and rounding to the nearest cent gives $0.56, which produces the new rate of $16.48.
Because the formula only responds to price increases, workers can expect another adjustment to be announced around the end of September each year, with the new rate taking effect the following January 1.
What do small business and seasonal workers earn in 2027?
Employees of seasonal employers and of businesses with fewer than six employees must earn at least $16.25 an hour in 2027. These workers are on a separate, phased schedule set by state law (N.J.S.A. 34:11-56a4(c)) for the years 2020 through 2028.
For 2027 and 2028, the law sets their raise as the general increase ($0.56) plus half of the gap between $15 and the 2026 general rate ($0.46). That adds up to $1.02, which is larger than a plain 3.52 percent inflation raise of $0.54 would have been. NJDOL says this phase-in finishes in 2028. After that, the small and seasonal rate rises each year with inflation, like the general rate.
What this means for you: if you work at a small family-run shop, a summer beach business or another seasonal operation, your 2027 pay floor is $0.23 below the general rate. Ask your employer which rate applies to you if you are not sure.
How much will New Jersey farm workers make in 2027?
Farm workers paid hourly or by piece rate must earn at least $15 an hour from January 1, 2027. This is the first time they reach the $15 benchmark set out in the 2019 law, which gave agriculture a longer phase-in than other industries.
The official notice explains why the rate is exactly $15. An inflation-only increase would have taken the farm rate to $14.70. The law instead requires the higher of the inflation figure or a fixed $0.80 step, so the rate moves from $14.20 to $15.00. Acting Labor Commissioner Kevin D. Jarvis called reaching $15 for agricultural workers "a particularly meaningful step toward ensuring equity across industries."
NJDOL says the farm schedule continues until 2030, after which farm wages will also rise each year with the CPI.
What is the NJ tipped minimum wage for 2027?
Tipped employees must receive a cash wage of at least $6.61 an hour in 2027, up from $6.05. Employers may count tips toward the rest of the minimum wage through a tip credit, which stays capped at $9.87 an hour.
The key rule for servers, bartenders and other tipped staff: your cash wage plus your tips must reach at least $16.48 for every hour worked. If they do not, your employer must pay the difference. Keep your own record of tips and hours each week, so you can spot a shortfall quickly.
Who is covered, and how does overtime work?
Most employees in New Jersey are protected by the state minimum wage, but some are not. The state lists exceptions including automobile salespeople, outside salespeople and most minors under 18.
Minors are covered when they work in certain occupations, including:
Retail and food service
Hotel and motel jobs
Laundry, cleaning and dyeing work
Light manufacturing and apparel work
Beauty culture occupations and the first processing of farm products
Overtime is paid at one and a half times your regular rate for every hour actually worked beyond 40 in a seven-day workweek, unless you are a salaried executive, administrative or professional employee who meets the exemption rules. New Jersey does not require extra pay just for weekends or holidays.
What does $16.48 an hour mean for your paycheck?
At $16.48 an hour, a 40-hour week works out to $659.20 before taxes and deductions. Using a standard 2,080-hour year (40 hours times 52 weeks), that is about $34,278 a year. These are simple estimates for a full-time schedule; your actual pay depends on your hours, deductions and any paid leave.
Find your category. Confirm whether you fall under the general, small or seasonal, farm, tipped or long-term care rate.
Check your first January paycheck. Hours worked on or after January 1, 2027, must be paid at no less than the new rate for your category.
Work out your overtime rate. At the general minimum, overtime is at least $24.72 an hour ($16.48 times 1.5).
Keep records. Save pay stubs, schedules and tip records in case you need to raise a problem.
How do you report an employer who underpays?
You can file a wage complaint with NJDOL's Division of Wage and Hour Compliance online, or by mail to PO Box 389, Trenton, NJ 08625-0389. The time limit is six years for unpaid minimum wage, overtime and other wage claims.
Within 10 days of receiving your complaint, the division mails an acknowledgment letter with a complaint number.
Answer every question on the form and attach copies, not originals, of any supporting documents.
Each worker must file their own complaint; group complaints are not accepted.
Anonymous complaints are allowed by mail, but you will not be able to check their status.
For a wider view of how the New Jersey minimum wage 2027 rates compare with other states, see our guide Minimum Wage 2027 by State. Last updated: October 8, 2026.
Frequently asked questions
What will the NJ minimum wage be in 2027?
The NJ minimum wage in 2027 will be $16.48 an hour for most employees. The new rate takes effect on January 1, 2027, replacing the 2026 rate of $15.92.
Is New Jersey's minimum wage going up in January 2027?
Yes. The New Jersey Department of Labor and Workforce Development announced on September 29, 2026, that every main minimum wage category rises on January 1, 2027. The general rate goes up by $0.56 an hour.
What is the minimum wage for small businesses in New Jersey in 2027?
Employers with fewer than six employees, and seasonal employers, must pay at least $16.25 an hour from January 1, 2027. NJDOL says the phased schedule for these employers ends in 2028; after that, their rate rises each year with inflation.
What is the tipped minimum wage in NJ for 2027?
Tipped workers must be paid a cash wage of at least $6.61 an hour in 2027, up from $6.05. The maximum tip credit stays at $9.87, and if tips plus the cash wage fall short of $16.48 an hour, the employer must pay the difference.
Do minors have to be paid minimum wage in New Jersey?
Not always. Minors under 18 are generally excluded, but the state says minors working in retail, food service, hotels and motels, light manufacturing and several other listed occupations are covered by minimum wage protection.
How do I report an employer who does not pay the New Jersey minimum wage?
File a wage complaint with the NJDOL Division of Wage and Hour Compliance, online or by mail to PO Box 389, Trenton, NJ 08625-0389. You have six years to file a complaint for unpaid minimum wage or overtime.
Sources
This article was compiled by Jobsiz from the official and news sources listed above, with AI-assisted writing and automated fact-checking against those sources. Rates are as announced by NJDOL; check the official notice for your situation.