Do nonprofits have to pay minimum wage?

In New Jersey, non-profit organizations are subject to the same minimum wage rules as any other employer under the law. This means they must pay a minimum wage of $10.30 per hour in 2021 for all staff members. This rate includes full-time and part-time employees. To start, non-profit organizations that have employees in New Jersey must register with the NJ Department of Labor and Workforce Development and comply with state and federal wage and labor laws. Those laws include the wage and hour laws set by the Federal Fair Labor Standards Act. Under the FLSA, non-profit organizations are required to pay the federal minimum wage of $7.25 per hour to employees. In addition, non-profit organizations in New Jersey must also abide by the state’s minimum wage laws. This means the organization must pay employees a minimum wage at least equal to the greater of the federal or state minimum wage requirement. As such, non-profit organizations are currently required to pay their employees a minimum wage of $10.30 per hour. For workers under the age of 18, the minimum wage for non-profits in New Jersey is $8.80 per hour. Tips may increase the wage the employer has to pay, but it cannot be lower than the minimum wage. The employer must pay employees overtime pay at 1.5 times the employee’s regular rate of pay for any hours worked over 40 hours in a week. In conclusion, non-profit organizations in New Jersey are subject to the same minimum wage laws as any other employer in the state and must pay at least $10.30 per hour to their employees.

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