State laws and the Fair Labor Standards Act (FLSA) delineate important protections for New Jersey workers, entitling them to certain levels of compensation. New Jersey wage and hour law covers legal areas like overtime law and minimum wage law, which are important for any New Jersey employee to know and understand.
New Jersey Overtime Law
The overtime laws in New Jersey are very similar to those established by the Federal government. In New Jersey, any hours worked over 40 in a workweek are to be paid at time-and-a-half for non-exempt employees. To explain a little further:
- A workweek is a recurring, 168 (7-day)-consecutive-hour period. Your overtime is always calculated within the space of seven consecutive days that begin and end on the same day. This keeps your employer from averaging weeks together or starting them on different days to deny you overtime.
- Time-and-a-half is 1.5 times your regular rate of hourly pay. For salaried employees, that means dividing your yearly salary (including merit-based commissions and bonuses) by 52 weeks, then dividing that number by 40 hours. That is your hourly rate. Multiply it by 1.5 to see your New Jersey overtime rate.
- Exempt employees are generally salaried workers who make over $455 a week and fall into the executive, administrative, or professional categories outlined in the FLSA. Whether they do or not depends on their job duties. A worker with the title “head of ____” is not exempt simply based on that title. The duties he or she actually performs will determine exemption.
New Jersey Minimum Wage Law
The minimum wage in New Jersey is the same as the Federal minimum wage: $7.25 an hour. Some other important minimum wage protections include:
- Protections for tipped employees: If you make over $30 a month in tips, these can count toward your minimum wage credit. However, if you fail to meet the minimum wage with your tipped wages alone, your employer must pay you for the difference. Most New Jersey restaurants and tip-driven wage environments pay a direct wage of $2.13 per hour as a safeguard, as suggested by law.
- Minors (under 18) are not guaranteed the New Jersey minimum wage, unless they work in the food service, retail, beauty culture, cleaning and dyeing, hotel and motel, apparel, or first processing of farm products industries.
More information on overtime law, minimum wage law, and New Jersey labor laws is available on IQOvertime. Their experienced New Jersey labor law attorneys have the knowledge and passion to fight for workers’ rights and get them the compensation they deserve.