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, but this bill will gradually reduce the allowable credit from $9.87 per hour 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, thereby increasing their overall earnings.

Additionally, the bill maintains the existing minimum wage structure, which includes specific increases based on the consumer price index and sets minimum wage rates for various categories of employees. The legislation emphasizes that employers will be required to pay the full minimum wage without considering tips once the credit is fully phased out, thereby enhancing the financial security of tipped workers in the state.

Statutes affected:
Introduced: 34:11-56