New Jersey Wage and Hour FAQs

New Jersey Minimum Wage, Overtime Questions

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What is the New Jersey minimum wage?

The minimum wage in New Jersey is $7.25 per year, effective July 24, 2009.

Are tipped employees entitled to the New Jersey minimum wage?

When combining tips and direct hourly wages, New Jersey tipped employees must make at least the minimum wage per hour. If tips plus hourly wages do not equal the minimum wage, employers must make up the difference.

Can employers reduce a worker’s pay rate?

Yes, as long as the employee receives advance notice of the change in pay. The reduction cannot be made retroactively and it cannot bring the worker’s rate of pay beneath the minimum wage.

When is overtime due?

Employees must be paid 1.5 times their regular rate for hours worked in excess of 40 during a seven-day workweek. Salaried employees who meet the definition of an executive, administrative or professional employee are exempt from overtime pay.

Are employees entitled to overtime pay when working on a holiday, Saturday or Sunday?

No. Employees are only entitled to overtime pay when working more than 40 hours during a workweek.

If an employee works 40 hours then receives 8 hours of holiday pay, are they entitled to overtime?

No, unless the employee actually worked more than 40 hours during that workweek. Overtime is only due after 40 hours of actual work.

If an employee wants to work overtime and will accept straight pay, can they waive their right to overtime pay?

No. The employer and employee cannot enter an agreement that violates New Jersey overtime law.

Can employees be forced to work overtime?

Yes. However, if the worker is non-exempt, he or she should be paid at a rate of 1.5 times their regular rate for the overtime hours. Employers cannot force employees to work overtime if it violates an existing collective bargaining agreement.

Can employers make deductions for shortages, damages or breakages?

No. Employers are only required to make deductions that are required or allowed by federal and New Jersey wage and hour law.

Can an employer make deductions for failure to return items such as tools, ID tags, etc.?

No. New Jersey wage and hour law does not allow employers to make deductions for unreturned items.

How often must New Jersey workers be paid?

Most employees should be paid at least twice per calendar month. Employers are allowed to designate paydays for their workers.

Are New Jersey workers entitled to rest or meal breaks?

Workers under the age of 18 must receive a 30-minute meal period when working more than five hours. There is no mandatory state law regarding breaks for workers over the age of 18.