Tips & Tipped Employees in New Jersey
In New Jersey, most employers must pay workers a minimum wage of $15.49 in 2025. The rules governing tipped employees, such as restaurant workers, can be complex. Let’s take a look at the questions tipped workers typically ask about their rights in New Jersey.
Frequently Asked Questions about Tips and Tipped Employees in New Jersey
Q: What qualifies as a tip?
A: A tip is any money given to a worker in recognition of his or her service to a customer. It is separate from the cost of goods or service, and can be in cash or added to a credit card payment. An employer may not take any portion of a tip.
Q: Who qualifies as a tipped employee?
A: Anyone who regularly receives more than $30 per month in tips will be considered a tipped employee.
Q: How does the minimum wage law apply to tipped employees in New Jersey?
A: Under New Jersey law, an employer may apply up to a fixed amount of a worker’s tips toward meeting the minimum wage requirement. As currently administered, the combination of tips and cash wages must equal at least $15.49 per hour. For example, if the employee earns $7.50 in tips for a specific shift, the employer must pay cash wages of $7.99 per hour to bring the tipped employee’s hourly compensation to $15.49 per hour.
Q: What is a tip pool?
A: A tip pool allocates the money received in tips to more than one employee. For example, in a restaurant, the tip left by a patron may be divided between the server, the kitchen, the hostess, the busser and/or others. For purposes of the minimum wage and the tip credit, only the actual amount of the tip received by the individual employee will offset the requirement to pay the minimum wage.
Let the Romero Law Group Protect Your Rights as an Employee
At the Romero Law Group, PLLC, we handle a wide range of legal issues for employees in Westchester County, Rockland County and Orange County in New York; and across Northern New Jersey, including all matters related to sexual harassment. We offer a free initial consultation to any employee with a potential employment law dispute. To schedule an appointment, contact our offices online or call us at (631)257-5588.