In 2022, New Jersey’s state minimum wage is $13 per hour.
Employers who elect to take the tip credit will be required to pay their tipped employees a cash wage of at least $5.13 per hour.
In calculating the overtime rate for the tipped employee, the restaurateur must multiply the minimum wage ($13.00 per hour) by 1½ (1.5), subtract the tip credit ($7.87 per hour), multiply that figure by the number of overtime hours worked, and then add that sum to their 40-hour total.
While employers typically provide lunch and meal breaks in New Jersey, there is no legal requirement for most employers to provide any breaks.
Yes, employers are legally allowed to do this. When a tip is placed on a credit card, the Fair Labor Standards Act lets an employer deduct credit card processing fees from the tip, as long as that does not pull the employee’s wages below the minimum wage and the tip is paid by the regular payday.
The New Jersey Earned Sick Leave Law allows employees to accrue 1 hour of earned sick leave for every 30 hours worked, up to 40 hours each year. The law permits employers to create policies that provide additional leave time.