How New Jersey’s Minimum Wage Has Changed Over the Years

From 1968 to now, New Jersey’s minimum wage has grown by over 968%. It started at $1.45 and now is $15.49. This shows the state’s long-term dedication to fair pay for workers, always above the federal minimum.

The story of new jersey minimum wage changes shows the state’s commitment to fair pay. While the federal minimum has stayed at $7.25 for 15 years, NJ has raised its wage to keep up with living costs.

Wage policies in New Jersey have changed over time. From $3.35 in 1981 to over $10 in recent years, the state has always looked to improve worker pay.

Knowing the history of these changes helps both employers and workers. The nj minimum wage history shows a careful increase in rates, with bigger jumps in the last decade.

The latest change happened in January 2025. The wage then was $15.49 per hour for most workers. This shows the state’s ongoing effort to find a balance between business needs and fair worker pay.

Historical Overview of New Jersey Minimum Wage

New Jersey’s minimum wage story started in 1968. At first, it was $1.45 an hour, a bit higher than the federal rate. This showed the state’s early commitment to fair wages.

In the 1970s, the minimum wage in New Jersey went up to $2.20 by 1976. This change helped workers keep up with the cost of living during high inflation. You can read more about this at this link.

The early 1980s saw more increases. By 1980, it was $3.10 an hour. Then, it jumped to $3.35 in 1981. But, from 1981 to 1991, the wage stayed the same, despite rising costs.

In the 1990s, New Jersey raised the minimum wage again. It went up to $3.80, then to $5.05 in 1994. These hikes were meant to help low-wage workers after a decade of no increases.

The 2000s saw a small change, raising the wage to $5.15 in 2000. This made New Jersey’s wage the same as the federal one, a break from its usual higher rates.

In 2006, New Jersey raised the minimum wage to $7.25 over time. This move was to address income inequality and help working families in a costly state.

In 2014, the minimum wage went up to $8.25 an hour. This followed a trend of states raising their minimum wages, as the federal rate stayed the same.

The biggest change came in 2019. New Jersey set a goal to reach a $15 minimum wage by 2024. This made it one of the leaders in the country on wage floors.

Over the years, New Jersey’s minimum wage policy has changed with the economy and politics. It shows how wage policies can impact workers’ lives and the economy as a whole.

Current Minimum Wage in New Jersey

In 2025, New Jersey’s minimum wage is $15.49 an hour. This rate applies to most workers, with some exceptions. It’s higher than the federal minimum of $7.25, which hasn’t changed in 16 years.

Tipped workers in New Jersey get a base wage of $5.62 an hour. Employers must add tips to this to meet the $15.49 minimum. If tips don’t cover this, employers must make up the difference.

Small businesses with less than six employees pay $14.53 an hour in 2025. This helps smaller businesses manage their costs while raising wages.

Direct care staff in long-term care facilities earn at least $18.49 an hour. This is $3 more than the standard minimum. It shows the importance of their work and helps with staffing issues.

Agricultural workers in New Jersey earn $13.40 an hour in 2025. This rate is specific to the farming industry. It helps farm workers while considering the industry’s unique challenges.

A 2019 constitutional amendment led to the $15 minimum wage by 2024. Now, wages increase annually based on the Consumer Price Index (CPI). This keeps wages in line with inflation.

New Jersey’s minimum wage is higher than many nearby states. Pennsylvania, for example, sticks to the federal minimum of $7.25. New York’s minimum wage varies by region but is generally between $15 and $16 an hour.

Employers must post minimum wage notices where employees can see them. This is a rule from the New Jersey Department of Labor and Workforce Development. It helps workers know their rights and ensures employers follow the law.

The wage increase in New Jersey aims to balance worker needs with business realities. This approach is a model for other states looking to reform their minimum wages.

Economic Impact of Minimum Wage Changes

New Jersey’s economy has changed a lot with the minimum wage increases. When Governor Murphy started in 2018, the minimum wage was $8.60 an hour. Raising it quickly became a big goal. These changes have had big effects on different parts of the state’s economy.

For those earning the minimum, these changes mean they can buy more. A full-time worker now makes about $5,200 more a year than in 2018. This helps many families financially. It helps most in retail, food service, and hospitality, where many work for the minimum.

Studies show that raising the minimum wage helps reduce income gaps and poverty. In New Jersey, areas with more minimum wage workers see fewer people on public aid. This shows people are more able to support themselves.

Businesses have found ways to deal with the higher wages. Some big companies have found ways to keep costs down. Others have started using more machines, like self-checkout systems.

Small businesses face special challenges. A survey found 30% of them cut hours to save money. Another 28% raised prices to cover the cost of higher wages.

Different industries feel the impact in different ways. The hospitality industry, with many minimum wage jobs, sees wages get closer together. This makes some employers change how they pay their staff.

With higher wages, people spend more money locally. This helps stores and services in the area. They see a bit more business, which is good for them.

Labor Commissioner Robert Asaro-Angelo talks about the good this does for society. He says it’s important for fairness and security in work. He believes it makes the economy more just and helps workers do well.

Higher wages also mean more money for the state. This extra money helps pay for public services. It’s a win-win for everyone.

Studies on New Jersey’s minimum wage show mixed results. A famous study from the 1990s found no job losses. More recent studies have mixed findings, with some showing little effect and others a small drop in work hours.

The long-term effects of New Jersey’s move to a $15 minimum wage are being studied. The short-term gains are clear, but economists are watching for bigger changes. They look at how jobs, businesses, and the state’s competitiveness might change over time.

Advocacy and Public Opinion

Support for raising the minimum wage in New Jersey is strong. Labor unions and worker groups have led the push for higher wages. Their hard work paid off when Governor Murphy signed a law in February 2019. This law set a path to a $15 hourly minimum.

This law will slowly raise wages, reaching $15.13 by January 1, 2024. Small and seasonal businesses have until 2028 to meet this wage. Agricultural workers have until 2030, due to their unique challenges.

Most New Jersey residents back these wage hikes. They know the current wage is too low. Research shows that even $15 is not enough in many areas. For example, Camden County needs at least $17.84 for a single adult to survive.

Business groups worry about the effect on small businesses. This led to a gradual increase. The goal is to help workers while giving businesses time to adjust. Over one million workers will see their wages go up, with women and people of color making up most of them.

Now, the focus is on the tipped minimum wage, which has been $2.13 for 30 years. As the new wage law takes effect, everyone is watching its impact on the state’s economy.