The Southern Ocean Chamber of Commerce is reminding businesses of several upcoming minimum wage increases that will affect employers across New Jersey. Beginning January 1, the minimum wage for most employers will rise to $15.92 per hour. Seasonal and small business owners should take note that under current legislation, the minimum wage rate for employees of seasonal and small employers will continue to increase gradually until 2028, a measure designed to ease the financial impact on businesses that often operate with tighter margins. In New Jersey, a small business is defined as one with fewer than six employees, while seasonal businesses are those that operate for less than ten consecutive weeks during the year. These classifications determine the minimum wage rates that apply to these types of businesses, and employers must ensure compliance to avoid penalties and guarantee fair compensation for their employees.

Effective January 1, 2026, the minimum hourly wage for workers employed by seasonal and small businesses will increase to $15.23, up from the current $14.53. These gradual increases are intended to give businesses time to adapt to higher labor costs while maintaining operations and employment levels. Long-term care facility direct care staff will also see their minimum hourly wage rise by $0.43, bringing the rate to $18.92. Agricultural workers follow a separate minimum wage timetable under the law, with incremental increases continuing until 2030. Employees who work on a farm for an hourly or piece-rate wage will see their minimum hourly wage increase to $14.20, up from $13.40.

The minimum cash wage rate for tipped workers will rise to $6.05 per hour, up from $5.62, while the maximum tip credit employers may claim will remain at $9.87. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, employers are required to pay the difference. 

The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage for the coming year based on any increase in Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics. This is pursuant to Article 1, Paragraph 23, of the New Jersey Constitution, and N.J.A.C. 12: 56-3.1(c) For more information on wage and hour compliance,visit NJ DOL website.