Can My Employer Pay Me Less Than Minimum Wage?

One of the key protections for workers in the U.S. is the guarantee of a minimum wage. This ensures that employers provide a basic standard of living for employees, but there are circumstances where exceptions apply. Generally, your employer cannot pay you less than minimum wage. However, there are some exceptions that you should be aware of to ensure your employer is paying you properly.

What is Minimum Wage?

The minimum wage is the lowest hourly rate that employers are legally required to pay their workers. This rate is set by federal, state, and local laws. While the federal minimum wage is $7.25 per hour, many states, including New Jersey, have implemented higher minimum wages to reflect the cost of living and other economic factors.

New Jersey Minimum Wage Laws

As of January 1st, 2024, the current minimum wage in NJ is $15.43, gradually being raised since the law was signed in 2019. However, small businesses (those with fewer than six employees), seasonal businesses, and farm labor companies are subject to slower adoption of the new rate and have until 2026 to implement it.

Exceptions to Minimum Wage Laws

Although most employees are entitled to the minimum wage, there are specific categories of workers who may not be subject to this requirement. Some of the common exceptions include:

• Full-time students
• Outside salespersons
• Motor Vehicle salespersons
• Part-time childcare employees who primarily work in the home of their employers
• Minors under 18, unless they are working in hotels, restaurants, retail, laundry, cleaning, beauty, light manufacturing, farming, or apparel occupations
• Individuals who work at summer camps, conferences, or retreats organized by non-profit religious organizations and associations

Tipped employees, such as servers and bartenders, are another exception to the standard minimum wage. If an employee’s total earnings, including both hourly wages and tips, fall below the minimum wage, the employer is required to make up the difference to ensure the employee receives at least the minimum hourly rate.

Subminimum Wage for Workers With Disabilities

While there are still federal provisions under the Fair Labor Standards Act that allow employers to pay subminimum wages to disabled workers, NJ has introduced legislation to phase this practice out. It promotes equal pay and prohibits the payment of subminimum wages regardless of disability, age, injury, or status.

Get Help If Your Employer Is Not Paying You Properly

As an employee in New Jersey, you have the right to receive the minimum wage and the right to be paid for overtime hours. If your employer is paying you less than minimum wage or is violating other wage & hour laws, such as denying earned sick leave, you should contact our New Jersey Employment attorneys at McOmber McOmber & Luber, P.C.

Our New Jersey wage and hour attorneys are standing by to help. If you need our legal assistance, call our New Jersey offices in Red Bank, Marlton, and Newark or our New York City,
NY, and Philadelphia, PA locations for a free consultation.