Minimum wage compliance remains a critical issue for employers, particularly as federal and state wage laws continue to evolve.

For New Jersey businesses, understanding the differences between federal and state wage requirements is essential to avoiding wage and hour claims, government audits, and costly penalties.

Here is what employers should know about current minimum wage requirements and emerging legal developments in 2026.

Federal Minimum Wage Requirements

Under the federal Fair Labor Standards Act (FLSA), the current federal minimum wage remains:

• $7.25 per hour

For tipped employees, employers may pay:

• $2.13 per hour, provided employee tips bring total compensation up to the applicable minimum wage

Although the federal minimum wage has not changed in several years, proposed legislation could significantly impact employers in the future.

Proposed Federal Minimum Wage Legislation

In April 2026, lawmakers introduced the proposed “Living Wage for All Act,” which would gradually increase the federal minimum wage over time.

The legislation proposes:

• Increasing the federal minimum wage to $25 per hour between 2031 and 2038
• Periodic adjustments tied to the national median wage
• A long-term requirement that the federal minimum wage remain equal to approximately two-thirds of the national median wage

The bill was co-sponsored by Analilia Mejia.

While the proposal is not currently law, employers should continue monitoring federal wage developments as workforce costs and...

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