October 29, 2025
Minimum Wage Increases Going Into Effect on January 1, 2026, in New Jersey and New York
Employers in New Jersey and New York should begin preparing for upcoming increases to minimum wage rates scheduled to take effect on January 1, 2026.
In New Jersey, the increases reflect annual adjustments under a 2019 law that established a phased schedule for raising the state’s minimum wage. For most employees, the minimum hourly wage will increase by $0.43, bringing the new rate to $15.92. The minimum hourly wage for employees of seasonal employers and small employers (who have fewer than 6 employees) will rise from $14.53 to $15.23.
New Jersey will also raise the minimum hourly wage for tipped workers to $6.05 per hour, while maintaining the maximum tip credit at $9.87. If an employee’s tips plus hourly wage rate are less than the minimum hourly wage of $15.92, then the employer must pay the difference.
In New York, minimum wage increases will go into effect as part of a multiyear agreement to index the state’s minimum wage to inflation. The minimum hourly wage for employees in New York City, Westchester County, and Long Island will increase from $16.50 to $17.00. For employees in the rest of the state, the minimum hourly wage will rise from $15.50 to $16.00.
In addition, New York will raise the salary thresholds required to qualify for the executive and administrative exemptions from overtime pay. To be classified as exempt under these categories, an employee must meet specific job duty requirements and earn at least the applicable salary threshold. As of January 1, 2026, the new salary threshold for employees in New York City, Long Island, and Westchester County will be $1,275.00 per week (or $66,300.00 annually). For employees in all other New York State counties, the new threshold will be $1,199.10 per week (or $62,353.20 annually).
With these changes approaching, employers should review and, where required, adjust their compensation structures to ensure compliance. It is also an ideal time to audit wage and hour practices to ensure employees are properly classified as exempt or non-exempt under state and federal law.
If you have questions about wage and hour laws, classification of employees or other employment law matters, please contact Chaim Book at cbook@booklawllp.com, Sheryl Galler at sgaller@booklawllp.com, Rebecca Nathanson at rnathanson@booklawllp.com or law clerk Leona Hansen at lhansen@booklawllp.com.
