This bill amends New Jersey's minimum wage law to phase out the credit that employers can take for gratuities or tips received by employees. Currently, employers can count tips towards meeting minimum wage requirements for tipped workers. The bill proposes a gradual reduction of this credit over five years, starting from a current rate of $9.87 per hour, decreasing to $7.90 in 2026, $5.92 in 2027, $3.95 in 2028, and $1.97 in 2029, ultimately eliminating the credit entirely in 2030. This change aims to ensure that tipped employees receive the same cash minimum wage as other workers, requiring employers to pay the full minimum wage without considering tips.

Additionally, the bill increases the minimum wage for tipped workers, aligning it with the broader minimum wage increases outlined in the existing law. The new legal language specifies that the minimum wage for tipped employees will be adjusted in accordance with the same schedule as other employees, ensuring that all workers receive equitable pay. The bill is set to take effect immediately upon passage, reflecting a significant shift in wage policy aimed at improving the financial stability of tipped workers in New Jersey.

Statutes affected:
Introduced: 34:11-56