On January 1, a voter-approved amendment to the New Jersey Constitution went into effect that raised the state minimum wage for almost all employees from $7.25 per hour to $8.25.

The state minimum wage will thereafter be increased every January 1 in accordance with the increase in the federal government’s consumer price index for all urban wage earners and clerical workers (commonly referred to as the CPI-W) as of the preceding September 30.

In addition, if at any time federal law establishes a minimum wage higher than that provided by the state constitution’s formula, the state minimum wage will be increased to match the federal. Employers should replace their New Jersey State Wage and Hour Law Abstract poster with the new poster that reflects the change. You can download the poster from the state. 

New Jersey’s minimum wage increase provides an opportunity for employers to review their compliance with minimum wage and overtime laws. The relatively small amount of effort it may take for an employer to audit its compliance could end up sparing the employer costly litigation.