New Jersey labor laws 2025 bring several key changes that both employers and employees should know. From minimum wage increases to pay transparency rules and stricter contractor classification standards, the labor landscape in New Jersey is evolving.
In this article, we break down the most important updates under New Jersey labor laws, why they matter, and what you should do to stay compliant.
Minimum Wage Increase & Wage Rules
One of the biggest changes under New Jersey labor laws 2025 is the increase in the minimum wage. Effective January 1, 2025, the minimum wage for most workers in New Jersey is now $15.49 per hour.
A few caveats and additional wage rules:
- The tipped minimum wage remains in place: tipped workers can be paid a lower base (e.g. around $5.62/hour) provided tips bring them up to at least the standard minimum wage.
- Certain categories have different minimums: for seasonal and small employers (less than 6 employees), agricultural workers, and long-term care direct care staff, different rate structures may apply.
- Employers should also revisit overtime pay calculations, commission schemes, and pay practices to ensure compliance under the new wage floor.
Because the minimum wage change is a headline shift, many businesses must update payroll systems, revise wage schedules, and ensure all affected employees are paid correctly.
Pay Transparency / Salary Posting Requirements
A new and significant change under New Jersey labor laws 2025 is the Pay and Benefits Transparency Act, effective June 1, 2025.
What the law requires
- Covered employers must include in every job posting (both internal and external) the hourly wage or salary (or range thereof) and a general description of benefits and other compensation programs for which the employee would be eligible.
- Employers must also make “reasonable efforts” to inform current employees of promotional opportunities in their department(s) before filling them.
- The law covers employers with 10 or more employees over 20 calendar weeks, including public employers.
Penalties for noncompliance
- Violations may incur civil penalties: up to $300 for a first violation, and $600 for each subsequent violation.
- Note: the statute treats each non-compliant posting as one violation but limits separate fines for the same posting even if distributed on multiple platforms.
Because of this change, employers must revisit all job posting templates, recruitment processes, and internal promotion communications to ensure compliance. It’s also a big win for jobseekers, giving them clearer insights into pay and benefits upfront.
Clarifying Independent Contractor Status: Proposed ABC Test Rules
Another important development in New Jersey labor laws 2025 is the move to codify and clarify the “ABC test” governing classification of independent contractors.
What’s happening
- On April 28, 2025, the New Jersey Department of Labor & Workforce Development (NJDOL) filed a notice of proposed rules under N.J.A.C. 12:11 to formally define how the ABC test should be applied under multiple state laws (wage & hour, unemployment, wage payment).
- The ABC test is the three-prong standard used by courts to determine if a worker is genuinely an independent contractor or should be treated as an employee. The proposed rules aim to fold in key court decisions (e.g., East Bay Drywall, Carpet Remnant Warehouse).
- A 60-day public comment period began May 5, 2025, for stakeholders to weigh in.
What the impact might be
- If adopted, the rules will make misclassifying independent contractors more risky for employers. More workers could be reclassified as employees, triggering retroactive wage and benefit obligations.
- Employers should monitor these rule developments closely and revisit contractor agreements.
Because the ABC test rules are not final yet, there is room for adjustment — but businesses should prepare proactively.
Other Notable Changes Under New Jersey Labor Laws 2025
Beyond wages, transparency, and contractor classification, New Jersey labor laws 2025 bring a few more shifts worth noting:
Dress Code & Anti-Discrimination
- Employers must ensure dress codes are gender neutral, in line with protections for gender identity and expression under New Jersey’s Law Against Discrimination.
- Employers also need to review policies to avoid discriminatory practices tied to gender, identity, sexual orientation, and other protected classes.
Coercion & Immigration Status Protection
- Under S2869, which took effect in 2025, employers may not coerce or retaliate against employees based on immigration status or use it to influence employment claims.
- This adds a layer of protection for vulnerable workers who may fear retaliation.
Data Protection / Privacy
- Although not strictly a labor law, the New Jersey Data Protection Act (NJDPA), effective January 15, 2025, enhances protections over personal data collected by entities doing business in NJ. This has implications for HR, personnel records, and data handling by employers.
- HR teams should ensure compliance with data security, consent, rights to deletion or correction of personal data, and notice policies under NJDPA.
What Employers & Employees Should Do Now
To adapt to New Jersey labor laws 2025, here’s a practical checklist:
| Stakeholder | Action Items |
| Employers | • Update payroll to reflect the $15.49 minimum wage • Revise job posting templates to include wage/benefits details • Ensure internal promotion notices are made to current employees • Monitor and prepare for final ABC test rules • Review contractor agreements for misclassification risk • Audit dress codes, HR policies for nondiscrimination • Align HR data practices with NJDPA requirements |
| Employees / Job Seekers | • In job searches after June 1, 2025, expect wage/benefits disclosure • Check whether your employer applied the correct minimum wage • If denied insider promotion notice, review whether that violates transparency law • Be aware of your rights in cases of misclassification • Understand your data rights under new privacy protections |
Conclusion & Outlook
New Jersey labor laws 2025 mark a turning point in how wage fairness, transparency, and worker classification are regulated in New Jersey. The mandatory wage increase and the Pay Transparency Act are immediate changes that demand action now. The looming codification of the ABC test for classification could further reshape contractor versus employee distinctions. Additions in nondiscrimination, privacy, and anti-coercion protections strengthen the legal framework for workers across the state.
If you’re an employer or HR professional, now is the time to audit your practices, update your policies, and ensure you’re ready for the new year. If you’re an employee or job seeker, these changes offer greater clarity, fairness, and tools to protect your rights.
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