2022 New Jersey Tipped Minimum Wage
The 2022 New Jersey Tipped Minimum Wage is $5.13.
Effective 2022-01-01Source: New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)Verified 2026-09-01
Who it applies to
Tipped workers in New Jersey whose employer claims a tip credit against the state minimum wage.
What changed this year, and why
New Jersey's minimum cash wage for tipped workers rose to $5.13 an hour on January 1, 2022.
Common questions
- What was the tipped minimum cash wage in New Jersey in 2022?
- New Jersey's minimum cash wage for tipped workers was $5.13 per hour, effective January 1, 2022.
- What if tips do not reach the minimum wage?
- If the cash wage plus the worker's tips do not equal at least the state minimum wage, the employer must pay the difference.
Who counts as a tipped employee
In New Jersey, a tipped employee is a worker whose earnings regularly include tips from customers, such as servers, bartenders, and hospitality staff. These workers may receive a lower cash wage from their employer because tips count toward their total compensation. For 2022, the minimum cash wage that New Jersey employers may pay to tipped employees is $5.13 per hour. However, if a worker's tips plus this cash wage do not add up to at least the full state minimum wage, the employer must make up the difference. The document does not specify the exact monthly tip threshold that qualifies a worker as tipped under the federal standard, so workers and employers in New Jersey should consult the Department of Labor's guidance on tipped worker rights for the complete definition.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit. If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
What a tip credit is, and the cash wage underneath it
In New Jersey, employers may count a portion of a tipped worker's tips toward meeting the state minimum wage. The minimum cash wage is $5.13 per hour, and employers can claim a tip credit equal to the difference between that cash wage and the full minimum wage. This means you are guaranteed to receive at least $5.13 per hour directly from your employer, with your tips making up the rest. If your tips plus the cash wage fall short of the full minimum wage in any pay period, the employer must cover the gap. This system lets employers pay a lower base wage while ensuring you still reach the state's required minimum when tips are included.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
When the tips do not get you to the minimum wage
New Jersey requires that tipped workers receive at least the full state minimum wage when their cash wage and tips are combined. If the direct wage paid by the employer plus your tips do not reach the state minimum, the employer must make up the difference. This means your employer cannot use slow business or low tip nights as a reason to pay you less than the minimum wage. The guarantee applies every pay period, so you should always see your paycheck reach at least the state minimum once tips are counted. If it does not, your employer owes you the shortfall.
If the minimum cash wage plus an employee’s tips do not equal at least the state minimum wage, then the employer must pay the employee the difference.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
The notice an employer owes you before it takes the credit
Before taking a tip credit, New Jersey employers must inform tipped workers about the credit and how it affects their pay. The employer must tell you the cash wage they will pay, the amount of the tip credit they will claim, your right to keep all your tips, and that the tip credit cannot exceed the actual tips you receive. This notice ensures you understand how your wages are calculated and what protections you have. Without this advance notice, the employer may not legally use the tip credit system, meaning they would owe you the full minimum wage directly.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
When state law gives more than the federal rule
New Jersey's Department of Labor and Workforce Development establishes the minimum wage for the coming year using either the rate specified in state law or a calculation based on the Consumer Price Index, whichever produces the higher figure. This means that when the federal minimum wage or tip credit rules fall short of what state law provides, employers in New Jersey must comply with the standard most protective to employees. For 2022, this requirement ensures that tipped workers in the state receive a minimum cash wage of $5.13 per hour, which reflects New Jersey's more generous worker protections compared to the federal baseline. Employers cannot rely on lower federal rates if the state calculation yields better compensation for their workers.
The New Jersey Department of Labor and Workforce Development (NJDOL) sets the minimum wage for the coming year using either the rate specified in the law or a calculation based on the Consumer Price Index (CPI), whichever is higher.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
Your employer, your manager and your supervisor may not keep your tips
New Jersey law prohibits employers from keeping any portion of an employee's tips. All tips belong to the worker who earned them. This includes managers and supervisors, who may not take a share of tips received by employees they oversee. The rule ensures that tips go directly to the workers who provide the service, not to the business or its leadership. If your employer or manager takes any part of your tips, they are violating state law and may owe you back wages.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
Which tip pools you can be made to join
New Jersey allows tip pooling, but only among workers who customarily receive tips as part of their job. The pool must be limited to employees in occupations where tips are a regular part of their compensation, such as servers, bussers, and bartenders. Employers cannot require non-tipped workers like cooks or dishwashers to participate, and managers or supervisors cannot take a share. This rule ensures that tip pools benefit the workers who actually serve customers, while preventing employers from using pooling arrangements to redirect tips to people who do not traditionally rely on them.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
Doing two jobs for one employer
If you work two different jobs for the same employer in New Jersey, you are considered a tipped employee only for the job where you regularly receive tips. For the other job, where tips are not part of your compensation, your employer must pay you the full state minimum wage without using a tip credit. This rule prevents employers from applying tipped wage rates to work that does not generate tips. For example, if you serve tables and also do office work for the same employer, you can be paid the tipped wage only for your server hours. Your office hours must be paid at the full minimum wage.
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (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.
New Jersey’s Minimum Wage to Increase to $13/Hour for Most Employees on Jan. 1 (New Jersey Department of Labor and Workforce Development)
- Minimum cash wage
Tipped workers will also see their minimum cash wage rise by $1 to $5.13/hour, with employers able to claim a $7.87 tip credit.
Other years
Every New Jersey Tipped Minimum Wage year · Tipped Minimum Wage in every state