Is there an off-sett in the NJ Minimum Wage? Paywizard.org answers.
Question: July 2010
I know the New Jersey minimum wage is in line with the federal rate of $7.25 per hour. But is there any offset for Waiters/Waitresses? in other words, as an employer if you have a tipped worker, are you still obligated to pay at $7.25 or is there an off-set?
Answer US Paywizard.org:
The New Jersey Department of Labor and Workforce Development says and I quote: "the total earnings (hourly wage plus tips) must equal at least the minimum wage per hour. The hourly rate is up to the employer; however, the suggested rate is a minimum of $2.13 per hour. If the hourly rate plus tips does not equal at least the minimum wage per hour, the employer is required to make up the difference."
Federal law does not allow most employers to fix their own hourly rate; under the federal minimum wage law, which applies to most New Jersey businesses, employers must pay tipped workers a base cash wage of $2.13 per hour
The US Department of Labor has some more information: "the New Jersey listed maximum credit is the total amount allowable for tips, food and lodging combined, not for tips alone as in other states." (see footnote 3). And in "specific situations where the employer can prove to the satisfaction of the labor department that the tips actually received exceed the creditable amount, a higher tip credit may be taken" (footnote 3).