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Minimum wage increases in New York and New Jersey on Jan. 1: What you need to know
By
Louis C. Hochman
Published Dec 26, 2024
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By
Louis C. Hochman
Published Dec 26, 2024
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The minimum wage will rise in both New York and New Jersey on Jan. 1, giving workers an extra boost heading into next year.
Both states’ minimum wages already far exceed the federal minimum of $7.25 an hour, and they increase annually because of requirements in state law. Here’s what you need to know about how the raises will work.
New York
Under legislation Gov. Kathy Hochul signed in 2023, the minimum wage is scheduled to rise by 50 cents each year through the start of 2026.
On Jan. 1, 2025, the minimum wage for most workers in New York City, Long Island and Westchester will increase to $16.50 an hour, up from $16.00 currently.
In the rest of the state, the minimum wage for most employees will increase to $15.50 an hour from $15.
Beginning in 2027, the rate will increase based on a formula tied to the federal Consumer Price Index, though the law allows that to be changed when certain economic conditions are met.
“In this current era of inflation and rising costs, every cent counts for all New Yorkers, especially workers who earn minimum wage,” state Labor Commissioner Roberta Reardon said in an announcement from Hochul’s office earlier this month.
Minimum pay rates are different for workers who receive tips, and depend on which sectors and geographic areas they work in.
New Jersey
In New Jersey, the minimum wage for most workers will increase by 36 cents to $15.49 an hour.
New Jersey’s minimum wage was $8.60 an hour until Gov. Phil Murphy signed legislation in 2019 that began a gradual ascent to the current rate of $15.13, with staggered increases each year.
Under the state constitution, the rate is further adjusted each year based on any increase to the Consumer Price Index.
“Aligning the state minimum wage with any increases in the cost of living is a critical step towards economic fairness and security for all New Jersey workers,” New Jersey Labor Commissioner Robert Asaro-Angelo said in a statement earlier this year.
The state's minimum wage for other workers, including seasonal and small business employees, agricultural workers, long-term care facility staff, and tipped workers, are subject to separate minimums described here.
What if you're due for an increase next year, but don’t get it?
In both New York and New Jersey, officials recommend contacting the respective state labor departments to report any apparent wage violations or discrepancies.
You can reach the New York state labor department at 1-888-4-NYSDOL (1-888-469-7365).
For the New Jersey state labor department, call 609-292-2305 or email [email protected].
Tagged
minimum wage
new york city
new york state
economy
Louis C. Hochman
After about two decades in (mostly) New Jersey-focused commercial print, digital and digital-but-radio-adjacent news, Lou stumbled into member-supported news in early 2021, as the editor and CEO of Montclair Local. There, he (hopes he) expanded enterprise, brought more sophistication to digital storytelling and moved the nonprofit newsroom closer to long-term financial sustainability. He helped lead the Local to its fourth consecutive General Excellence award from the New Jersey Press Association — the NJPA's highest honor with judges noting the paper's work to strip away layers of government opacity, to hold power to account, to make news accessible for more members of the community, to share the stories and concerns of more facets of the community and to tell compelling stories across multiple media. He's excited to continue the same ethic — news as a public service — at NYPR as the New Jersey and suburbs editor, drawing on the extraordinary talents of reporters including Karen Yi and Nancy Solomon. Lou lives in Philly (that commute!) with his partner and their two cats, about whom and about which he speaks incessantly.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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