New Jersey’s minimum wage will remain at $8.38 per hour for 2016, the state government recently announced.  

As we reported on January 2, 2015, New Jersey’s constitution requires that the state minimum wage increase annually (and proportionally) if there is an increase of the consumer price index for all urban wage earners and clerical workers (CPI-W) for the prior year. The New Jersey Department of Labor and Workforce Development, Division of Economic and Demographic Research (DOL) recently announced that there was no such increase in the past year (August 2014 to August 2015), meaning the minimum wage will remain as is. 

The DOL will continue to publish a notice about the CPI-W in the New Jersey Register and on the DOL’s website prior to September 30th each year, which will be the determining factor in whether the minimum wage will rise in the future.

Employers who have non-exempt workers in New Jersey earning minimum wage should ensure that they are being paid at least $8.38/hour for all hours worked as well as when calculating any required overtime payments. Employers with workers in multiple states should also be cognizant that the minimum wage may be different in those other states.   

Employers should also stay tuned for the DOL’s annual announcement on or before September 30, 2016, and be mindful that the minimum wage may increase as of January 1, 2017 and beyond.