New Jersey Bill to Eliminate Minimum Wage Tip Credit Will Impact Hospitality Industry
Quick Hits New Jersey Assembly Bill A5433 proposes a five-year phase-out of the tip credit, spanning from 2026 to 2030. The bill would mandate employers pay the full state minimum wage to tipped employees before the addition of tips. Potential consequences include increased labor expenses for businesses, higher prices for consumers, and uncertain effects on the overall income of tipped workers. The tip credit is a legal provision allowing employers…