2019 New Jersey Tipped Minimum Wage
The 2019 New Jersey Tipped Minimum Wage is $2.63.
Effective 2019-01-01Source: NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)Verified 2026-08-31
Who it applies to
Tipped employees working for employers in New Jersey
What changed this year, and why
The tipped minimum cash wage in New Jersey increased to $2.63 per hour, effective July 1, 2019.
Common questions
- What is the minimum cash wage for tipped employees in New Jersey in 2019?
- Effective July 1, 2019, the minimum cash wage an employer must pay a tipped employee in New Jersey is $2.63 per hour.
- Must a tipped employee's total pay reach the regular minimum wage?
- Yes. The tipped cash wage combined with the tips received must still equal or exceed the applicable minimum wage. If tips do not bring the employee's earnings up to the full minimum wage, the employer must make up the difference.
What a tip credit is, and the cash wage underneath it
In New Jersey, the tip credit system allows employers to pay tipped workers a lower direct cash wage while counting their tips toward meeting the minimum wage requirement. The document states that the tipped wage is $2.63 per hour effective July 1, 2019, and that "that wage, combined with a worker's tips, must still reach the minimum wage." This means your employer pays you $2.63 per hour directly, and the difference between that amount and the full minimum wage is the tip credit. The tip credit is not additional money your employer pays - it represents the portion of your minimum wage obligation that is satisfied by your tips rather than by direct wages. However, this system only works if your tips are sufficient to make up the difference. If your tips plus the $2.63 cash wage don't equal the full minimum wage, your employer must pay you the difference to ensure you receive at least the minimum wage for all hours worked. The tip credit structure ensures that tipped workers in New Jersey receive at least the minimum wage when their total compensation - direct wages plus tips - is calculated.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
When the tips do not get you to the minimum wage
New Jersey law requires that tipped employees receive at least the full minimum wage when their total compensation is calculated. The document states that the tipped wage of $2.63 per hour, "combined with a worker's tips, must still reach the minimum wage." This means that if your tips are insufficient to bring your total hourly earnings up to the minimum wage level, your employer is legally obligated to make up the difference. Your employer must monitor your earnings and ensure that your direct wages plus your tips equal at least the minimum wage for every hour worked. If there are slow periods when tips are low, or if business conditions reduce your tip income, your employer cannot simply pay you the lower cash wage and leave you short. The employer bears the responsibility for calculating your total compensation and providing supplemental payment when tips fall short of what's needed to reach the minimum wage threshold. This protection ensures that tipped workers in New Jersey never earn less than the applicable minimum wage, regardless of how much they receive in tips during any given pay period or work shift.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
The notice an employer owes you before it takes the credit
Before an employer in New Jersey can use the tip credit to pay you the lower cash wage of $2.63 per hour, they must provide you with specific notice about how the tip credit system works. While the document doesn't detail the exact notice requirements, it states that the tipped wage "combined with a worker's tips, must still reach the minimum wage." This requirement is part of federal law, which mandates that employers inform tipped employees about several key points before taking a tip credit: the amount of cash wage the employer is paying, the additional amount claimed as a tip credit, that the tip credit cannot exceed the tips actually received, that all tips are retained by the employee (except for valid tip pooling arrangements), and that the tip credit will not apply unless the employee has been informed of these provisions. In New Jersey, employers must comply with both state and federal notice requirements. If your employer fails to provide this information before paying you the lower tipped wage, they may not be legally entitled to use the tip credit, and you may be owed the full minimum wage for all hours worked.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
Your employer, your manager and your supervisor may not keep your tips
In New Jersey, tips belong to the employee who receives them, not to the employer, managers, or supervisors. While the document doesn't explicitly state this rule, it establishes that the tipped wage of $2.63 per hour "combined with a worker's tips, must still reach the minimum wage." This structure makes clear that tips are the employee's compensation, not the employer's revenue. Federal law prohibits employers from keeping any portion of an employee's tips, and this principle applies in New Jersey as well. Your tips are your earnings, and your employer cannot take a share of them for any reason - whether for administrative costs, breakage, cash register shortages, or any other purpose. Managers and supervisors are also prohibited from participating in tip pools or retaining tips that customers leave for service employees. This rule ensures that the tip credit system works as intended: employers pay a lower cash wage because they expect employees to receive tips that bring their total compensation to at least the minimum wage. If employers could keep tips, this system would fail to protect workers. In New Jersey, all tips received by tipped employees remain theirs to keep.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
Which tip pools you can be made to join
In New Jersey, employers may require tipped employees to participate in tip pooling arrangements, but these pools are subject to strict limitations. While the document doesn't detail tip pooling rules specifically, it establishes that the tipped wage of $2.63 per hour "combined with a worker's tips, must still reach the minimum wage." Federal law provides that tip pools must be limited to employees in occupations where they customarily and regularly receive tips. This means your employer can require you to share your tips with other tipped employees - like bussers, bartenders, or hosts - but cannot require you to share with non-tipped workers such as cooks, dishwashers, or janitorial staff. The rationale is that tip pooling redistributes tips among workers who directly serve customers and whose compensation structure relies on tips. If non-tipped employees were included, it would violate the principle that tips belong to those in traditionally tipped positions. In New Jersey, any tip pool your employer requires must comply with these federal restrictions. If you're forced to share tips with employees who don't customarily receive them, the arrangement may be illegal, and you may be entitled to recover those tips plus additional damages.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
Doing two jobs for one employer
In New Jersey, some workers perform multiple jobs for the same employer - for example, someone who works as a server during dinner hours and as a host during lunch. The document states that the tipped wage of $2.63 per hour "combined with a worker's tips, must still reach the minimum wage." This principle applies differently depending on which job you're performing. When you're working in a tipped occupation like server, your employer may pay you the lower tipped wage because tips are a regular part of that role. However, when you switch to a non-tipped job like host or food prep, your employer must pay you the full minimum wage for those hours. Federal law provides that an employee is a tipped employee only with respect to employment in which they customarily and regularly receive tips. If you spend substantial time in non-tipped duties, your employer may not be able to use the tip credit for that time. In New Jersey, employers must carefully track which hours you spend in tipped versus non-tipped positions and pay you accordingly. You're entitled to the full minimum wage for all time spent in non-tipped work, even if you also work in a tipped position for the same employer on the same day.
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024. That wage, combined with a worker’s tips, must still reach the minimum wage. N.J.S.A. 34:11-56a4(e).
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
NJDOL and Attorney General Send Letter to NJ Employers as Minimum Wage Increase Takes Effect (New Jersey Department of Labor and Workforce Development)
- Minimum cash wage
The tipped wage will also rise, beginning with an increase to $2.63 effective July 1, 2019, and gradually rising to $5.13 per hour by 2024.
Other years
Every New Jersey Tipped Minimum Wage year · Tipped Minimum Wage in every state