The New “Minimum”: Is Your NJ Business Ready For 2026?
As we move into 2026, New Jersey continues to lead the nation in progressive labor standards. For small business owners, “business as usual” now includes navigating a significant set of updates to the State’s Wage and Hour laws and an unprecedented expansion of family leave protections.
To help you stay ahead of the curve and avoid costly compliance errors, we have summarized the most critical changes taking effect this year.
New Minimum Wage Rates for 2026
Effective January 1, 2026, New Jersey’s minimum wage has increased across the board. These annual adjustments are now largely tied to the Consumer Price Index (CPI), ensuring wages keep pace with inflation.
Employee Category 2026 Hourly Rate
Standard Employees $15.92
Small & Seasonal Employers (<6 employees) $15.23
Agricultural Workers $14.20
Tipped Workers (Cash Wage) $6.05 (with a claimed $9.87 tip credit)
Long-Term Care Direct Care Staff $18.92
*Note for Tipped Employers: If the $6.05/hour base wage plus tips does not equal at least the $15.92 standard minimum wage, you are legally required to pay the difference.
The NJ Family Leave Act (NJFLA) Expansion
Perhaps the most significant change for small businesses in 2026 is the expansion of the New Jersey Family Leave Act. A new law signed in January dramatically lowers the threshold for coverage, bringing many “very small” businesses under the act for the first time.
Key Dates and Thresholds:
Effective July 17, 2026: The NJFLA will apply to employers with 15 or more employees (down from the previous 30-employee threshold).
Eligibility Shift: Employees no longer need to work a full year to qualify. As of July, workers are eligible for job-protected leave after just three (3) months of employment and 250 hours worked.
What This Means for You:
If you have 15 or more employees, you must now provide up to 12 weeks of job-protected leave in a 24-month period for the birth or adoption of a child or to care for a family member with a serious health condition.
Coordinated Leave Systems
New Jersey is streamlining how different leave types interact. Employers must now manage Earned Sick Leave, Temporary Disability Insurance (TDI), and Family Leave Insurance (FLI) as a coordinated system.
Employee Choice: Employees now have more autonomy to choose which statutory leave to use and in what order.
Reinstatement Rights: The 2026 updates strengthen an employee's right to be restored to their original position (or an equivalent one) after taking leave, specifically tightening the link between paid benefits and job protection.
Compliance Checklist for Small Businesses
To stay compliant this year, we recommend the following action items:
Audit Your Headcount: If you hover near the 15-employee mark, prepare for the July 17th NJFLA expansion now.
Update Your Postings: Ensure you have the latest 2026 Minimum Wage and NJFLA posters displayed in a visible area and distributed digitally to remote workers.
Review Employee Handbooks: Most handbooks will now have outdated language regarding eligibility periods and employer size thresholds.
Train Management: Ensure your supervisors understand the new "3-month" eligibility rule for leave to avoid accidental retaliation or denial of valid claims.
We’re Here to Help
Navigating the nuances of Garden State labor law is a full-time job in itself. If you are unsure how these changes affect your specific business model or need a review of your current employment contracts, our team is ready to assist.
~By Jonathan Ng, Esq.