Minimum Wage & Tipped Workers $15.92 / HR
New Jersey’s minimum wage for most workers is $15.92 per hour in 2026. This applies to most full-time, part-time, and temporary employees who perform work in the state.
Tipped employees may be paid a lower direct cash wage of $6.05 per hour in 2026, with the employer claiming a tip credit toward the rest of the minimum wage. Cash wages and tips together must still equal at least $15.92 per hour. If tips fall short, the employer must make up the difference.
New Jersey also has special minimum-wage rules for certain categories of workers, including long-term care facility direct care staff, seasonal and small employers, and some agricultural workers. The correct rate can depend on the worker’s role and employer category.
Overtime Laws 1.5X RATE
New Jersey requires overtime pay at one and one-half times the regular rate for hours worked over 40 in a workweek, unless a specific exemption applies. At the 2026 minimum wage, that makes the minimum overtime rate $23.88 per hour.
Salary does not automatically exempt a worker from overtime. Exemptions depend on the actual job duties and the legal requirements for the exemption, not the job title alone. Workers labeled as managers, administrators, or salaried staff may still be owed overtime when their duties do not qualify.
New Jersey also gives certain trucking industry workers overtime protection even when the federal Motor Carrier Act exemption would otherwise block federal overtime. For those covered workers, New Jersey law still requires an overtime rate of at least 1.5 times the New Jersey minimum wage for hours over 40.
Six-Year Window & 200% Liquidated Damages 6 YEARS + 200%
New Jersey gives workers up to six years to pursue unpaid wage claims under state wage and hour law. That is one of the strongest lookback periods in the country and can dramatically increase recovery when an underpayment has continued for years.
New Jersey also allows liquidated damages of up to 200% of the wages owed. A worker owed $10,000 in unpaid wages may be able to recover the original $10,000 plus up to $20,000 in additional liquidated damages, along with other available remedies.
Agreements to accept less than the wages legally owed generally do not erase New Jersey wage rights. Employers cannot use a private waiver or pressure a worker to give up wages that the law requires.
Earned Sick Leave 40 HRS / YEAR
New Jersey’s Earned Sick Leave Law requires employers to provide paid sick leave. Employees accrue one hour of earned sick leave for every 30 hours worked, up to 40 hours per benefit year.
Earned sick leave can be used for the worker’s own illness, a family member’s illness, medical care, certain domestic or sexual violence needs, school-related closures or meetings, and other covered reasons under the law.
Employers cannot retaliate against workers for using, requesting, or attempting to use earned sick leave. Discipline, reduced hours, termination, or other negative treatment tied to sick leave can create a separate violation.
Healthcare Mandatory Overtime NJ SPECIFIC
New Jersey restricts mandatory overtime for covered health care facility employees. The law addresses when health care facilities may require certain hourly employees to work overtime beyond their scheduled shifts.
Covered health care workers generally cannot be discriminated against or discharged for refusing overtime that the mandatory-overtime law prohibits. Facilities also have documentation and notice obligations when emergency exceptions are used.
For health care workers, forced overtime can overlap with wage claims when the extra time is unpaid, underpaid, or tied to retaliation.
Retaliation Protections 90-DAY RULE
New Jersey law protects workers who complain about unpaid wages, cooperate with an investigation, file a claim, or otherwise exercise wage-and-hour rights.
A major New Jersey advantage is the 90-day retaliation presumption. When an employer takes an adverse action within 90 days after a worker files a complaint or a claim is brought, that timing can be treated as presumptive evidence that the action was retaliatory.
Retaliation remedies can include lost wages, reinstatement or correction of discriminatory action, and liquidated damages tied to the wage loss, depending on the claim and statute involved.
Employee Misclassification ABC TEST
New Jersey uses the ABC test to decide whether a worker is an employee or an independent contractor. The employer must satisfy all three parts of the test. If even one part fails, the worker is treated as an employee for covered purposes.
The ABC test looks at whether the worker is free from control, whether the service is outside the usual course of the business or performed outside the employer’s places of business, and whether the worker is customarily engaged in an independently established trade or business.
New Jersey also has aggressive misclassification penalties. Misclassified workers may be entitled to additional amounts tied to gross earnings, and the state can pursue separate penalties beyond the unpaid wages themselves.
Construction Misclassification SERIOUS PENALTIES
New Jersey’s Construction Industry Independent Contractor Act applies strict rules to construction misclassification. Knowing misclassification in construction can create serious consequences beyond ordinary wage liability.
Construction employers can face civil penalties, restitution, stop-work consequences, public-contract consequences, and potential criminal exposure when the law is violated. Repeat violations can carry even heavier enforcement consequences.
A construction worker who was called a subcontractor, paid through a 1099, or routed through another entity may still be an employee under New Jersey law if the ABC test is not met.
This article is provided for informational and educational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship with Josephson Dunlap LLP. Wage and hour laws vary by state, and the application of these laws depends on the specific facts of each situation. The figures and information cited above are current as of the date of publication and are subject to change. Prior results in other matters do not guarantee or predict a similar outcome in any future matter. If you believe your wages were not paid correctly, consult a qualified, licensed employment attorney.
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