It depends. State law does not require businesses to offer vacation time or other benefits such as severance or holiday pay. However, businesses that do offer these benefits should administer them uniformly according to their established policies. Uneven application of vacation policies can lead to legal liability.
New Jersey Labor Laws
New Jersey Minimum Wage
As of January 1, 2021, the minimum wage in New Jersey is $12 per hour for most employers. However, small employers with fewer than six employees are required to pay a minimum wage of $10.30 per hour. Since the state minimum wage is higher than the federal Fair Labor Standards Act requirement, employers in New Jersey must adhere to the higher state rate.
Additionally, New Jersey’s minimum wage is set to increase incrementally, reaching $15 per hour as follows:
- January 1, 2022: $13 per hour
- January 1, 2023: $14 per hour
- January 1, 2024: $15 per hour
New Jersey Labor Law Posters
Simplify labor law compliance and make workplace policies visible with J. J. Keller state and federal labor law posters.
History of New Jersey Labor Laws
The minimum wage in New Jersey has indeed seen more significant increases recently. For instance, it rose from $11 to $12 per hour on January 1, 2021. Prior to that, the increases were smaller:
- $8.60 on January 1, 2018
- $8.44 on January 1, 2017
- $8.38 on January 1, 2016
These changes reflect a shift towards more substantial annual increases in the minimum wage.
Municipality Minimum Wage Laws
No cities in New Jersey have their own minimum wage laws.
New Jersey Minimum Wage Exemptions
New Jersey allows certain exceptions to its minimum wage requirements for specific workers, including:
- Automobile salespersons
- Outside salespersons
- Most minors under 18 (except those working in retail/mercantile, restaurant, hotel/motel, beauty culture, laundry/cleaning/dyeing, light manufacturing apparel, and first processing of farm products, who must be paid at least the state minimum wage)
Additionally, some types of businesses are exempt from paying the minimum wage to their employees under New Jersey law. These include:
- Nursing homes
- Boardwalks and other seasonal amusements
- Summer camps
- Professional offices
- Libraries
However, employees in food service roles at these businesses must be paid at least the state minimum wage.
New Jersey Posting Requirements
Required posters:
- Minimum Wage
- Child Labor
- Conscientious Employee Protection Act (Whistleblower Act)
- Fair Employment
- Family Leave
- Family Leave Insurance
- Gender Equity
- Schedule of Minors' Hours
- Employee Recordkeeping Requirements
- Security and Financial Empowerment Act (Safe Act)
- Earned Sick Leave
- Unemployment Insurance
- Payment of Wages
- No Smoking Sign
Tipped Wage in New Jersey
If your business employs workers who earn tips, you are required to ensure they receive at least the minimum wage. As of January 1, 2021, the suggested hourly rate for employers is $4.13. If this amount, combined with tips, does not equal $12 per hour, the employer must cover the difference.
Starting in 2022, when the New Jersey minimum wage increases to $13 per hour, the tip rate will be $5.13.
Overtime Wage in New Jersey
If an employee works more than 40 hours in a seven-day workweek, they must be paid overtime at a rate of one-and-a-half times their regular pay.
Regarding holidays, Saturdays, and Sundays, employers are not required to pay double time or time-and-a-half unless the employee works on those days and their total hours for the week exceed 40, in which case overtime pay is required.
For employees with multiple job titles and different hourly rates, the weighted average method should be used to calculate their hourly rate for overtime purposes.
Certain salaried employees, such as those in executive, administrative, or professional roles, are exempt from overtime pay requirements.
Child Labor Laws in New Jersey
Minors in New Jersey have specific work hour restrictions based on their age:
For minors aged 14 and 15:
During school weeks:
- No more than 18 hours per week
- No more than 3 hours per day on school days
- No more than 8 hours per day on Saturdays or Sundays
- Not before 7 a.m. or after 7 p.m.
During non-school weeks:
- No more than 40 hours per week
- No more than 8 hours per day
- Not before 7 a.m. or after 7 p.m. during the school year
- Not before 7 a.m. or after 9 p.m. from the last day of school to Labor Day with written permission from a parent
For minors aged 16 and 17:
During school weeks:
- No more than 40 hours per week
- No more than 8 hours per day
- Not before 6 a.m. or after 11 p.m.
- Not before 6 a.m. or after 12 midnight on Fridays, Saturdays, or days not followed by a school day
During non-school weeks:
- No more than 40 hours per week
- No more than 8 hours per day
- Not before 6 a.m. or after 11 p.m.
- Not before 6 a.m. or after 3 a.m. in restaurants and seasonal amusements with written permission from a parent
Employer Recordkeeping Requirements in New Jersey
Employers in New Jersey must maintain the following records for each employee:
- Employee’s name
- Employee’s address
- Employee’s birth date if under 18
- Total hours worked each day and each workweek
- Earnings, including regular hourly wage, gross to net amounts with itemized deductions, and the basis on which wages are paid
- For employees receiving gratuities, the total gratuities received during the payroll week
- For employees receiving gratuities, daily or weekly reports containing:
- Employee’s name
- Employee’s address
- Employee’s Social Security number
- Employer’s name and address
- Calendar day or week covered by the report
- Total amount of gratuities received
- For employees for whom the employer claims credit for food or lodging, information substantiating the cost of furnishing such food or lodging
These records must be kept for six years at the place of employment or in a central office in New Jersey.
New Jersey Labor Law Questions & Answers
Yes, but at a lower rate than most other employers. The minimum wage for small businesses is $10.30 per hour. New Jersey defines small businesses as those with fewer than six employees.
Minors aged 14 and 15:
- Cannot work more than 18 hours per week during a school week
- Cannot work more than 3 hours per day on a school day
- Cannot work more than 8 hours per day on Saturday or Sunday
- Cannot work more than 40 hours per week during non-school weeks
- Cannot work more than 8 hours per day
Minors aged 16 and 17:
- Cannot work more than 40 hours per week
- Cannot work more than 8 hours per day
Yes, employers can require employees to work overtime hours. The state sets the overtime rate at one-and-a-half times the regular rate of pay. Note that an employer-employee collective bargaining agreement may restrict an employer’s ability to require overtime. Additionally, New Jersey has special regulations involving health care workers and mandatory overtime.
No, company policy should be followed regarding lunch breaks and other breaks. However, New Jersey law specifies that minors under the age of 18 must be given a 30-minute meal period after five consecutive hours of work.
New Jersey Labor Law Posters
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