Answer
New Jersey's $15.92/hr minimum wage (January 2026) is binding at the bottom, but competitive northern market rates run $18 to $20/hr base, with total loaded cost hitting $30 to $42/hr due to the nation's second highest workers' comp rate at $4.92 per $100 payroll.
- Statewide median is $18.09/hr, but NYC metro NJ runs $19.40/hr while South Jersey markets like Vineland sit at $16.68/hr.
- SEIU 32BJ covers roughly 7,000 workers in northern NJ with contract wages of $17.50 to $22/hr plus full health benefits.
- Workers' comp through NJCRIB costs approximately $4.92 per $100 payroll, second highest nationally and double the U.S. average.
$4.92 Workers' comp rate per $100 payroll (NJCRIB)
Commercial cleaning contractors in New Jersey face a binding floor of $15.92/hr for standard employees as of January 1, 2026, indexed annually to CPI. The statewide median sits at $18.09/hr (BLS OEWS May 2025, SOC 37-2011), but that figure masks a sharp geographic split: the New York metro portion of the state runs at $19.40/hr median, driven by SEIU 32BJ master contract rates in northern New Jersey office buildings, while South Jersey markets like Vineland track closer to $16.68/hr. Workers' comp through NJCRIB runs approximately $4.92 per $100 payroll, second highest in the nation. Total loaded cost in the northern corridor typically lands between $30 and $42/hr.
What employers should plan for
- Floor (large employers, 6+): $15.92/hr effective January 1, 2026 (CPI-indexed annually). Increased from $15.49 in 2025. For commercial cleaning contractors — virtually all of whom have more than 5 employees — this is the operative rate.
- Floor (small/seasonal employers, ≤5): $15.23/hr effective January 1, 2026 (increased from $14.53 in 2025). This schedule will reach parity with the large employer rate by 2028 under the law's design.
- Local floors: No NJ municipality has enacted a higher local minimum wage above the state rate. Newark, Jersey City, and Trenton do not have independent minimum wage ordinances above the state level.
- Loaded labor rate: Commercial cleaning bids in New Jersey run $30–$42/hr total loaded cost — among the highest in this batch — reflecting high base wages, the elevated NJCRIB workers' comp rate, strong benefit expectations in SEIU-organized markets, and high general overhead in the NYC metro area.
- Workers' comp class equivalent rate — New Jersey uses the NJCRIB (independent rating bureau, not NCCI). The equivalent to class 9014 (building operations by contractor) carries an estimated rate of approximately $4.92/$100 payroll — the second-highest in the nation per Oregon DCBS 2024 comparisons (behind only California and New York).
High-wage metros vs. low-wage metros
New York-Newark-Jersey City NY-NJ MSA (NJ portion) leads at a median $19.40/hr (10th: $16.23, 25th: $17.35, 75th: $24.26, 90th: $29.97) — directly reflecting SEIU 32BJ master contract wages for unionized building service workers in northern NJ office towers. Atlantic City-Hammonton MSA comes in at median $18.17/hr (10th: $15.13, 75th: $19.59, 90th: $22.97), boosted by casino and resort facility cleaning contracts. At the lower end, Vineland MSA posts median $16.68/hr (25th: $15.15) — the lowest in the state, reflecting the agricultural-adjacent economy of South Jersey — and Philadelphia-Camden-Wilmington NJ portion sits at $17.52/hr median, tracking Pennsylvania market rates.
Wage percentile distribution (BLS OEWS 2024)
- 10th percentile: $15.13/hr
- 25th percentile: $16.28/hr
- Median (50th): $18.09/hr
- 75th percentile: $20.77/hr
- 90th percentile: $24.66/hr
New Jersey's distribution is notably compressed at the bottom — the 10th percentile at $15.13/hr is just barely above the old 2025 minimum wage of $15.13/hr, suggesting the minimum wage has been a binding floor in the lower decile. The $9.53/hr spread from 10th to 90th understates the true range: the NYC-metro Metro area 90th is nearly $30/hr, while the statewide figure is pulled down by South Jersey markets.
Union presence
SEIU 32BJ is the preeminent commercial cleaning union in New Jersey, representing approximately 7,000 workers under the Tri-State Master Agreement that covers New Jersey, New York, and Westchester/Putnam/Dutchess counties. The union's NJ footprint is concentrated in the Newark/Jersey City/Hudson County corridor and major northern NJ office parks (Parsippany, Morristown, Short Hills). Union CBAs typically specify wages of $17.50–$22/hr for experienced NJ commercial cleaners, plus full health benefits. Atlantic City casino cleaning workers are covered under separate Culinary/UNITE HERE agreements. Commercial cleaning in southern NJ (Camden, Burlington, Gloucester Counties) is predominantly non-union.
What this means for bid math
New Jersey carries the second-highest total loaded labor cost in this batch after Oregon's Portland market. Budget $15.92/hr as the absolute floor and $18–$20/hr as the competitive market rate for northern NJ commercial cleaning. The NJCRIB workers' comp rate (~$4.92/$100) is more than double the national average for this class — a material cost difference versus states like Nevada or Nebraska. Total loaded labor runs 1.85–2.20× base ($30–$42/hr). Northern NJ SEIU-organized buildings require separate pricing at $20–$25/hr base plus full benefits. Annual CPI adjustments to the minimum wage (tied to CPIU) add escalation risk to multi-year contracts — build in at least 3–4% annual labor cost escalation for NJ contracts.
Primary sources
- O*NET Local Wages — New Jersey (BLS OEWS May 2025 data)
- NJ DOL — Minimum Wage Increases to $15.92 Effective Jan 1, 2026
- LSNJLaw — NJ Minimum Wage 2026 ($15.92 large / $15.23 small)
- SEIU 32BJ — New Jersey
- DOL WHD State Minimum Wage Laws
- Commercial Cleaning Licensing in New Jersey →
- OSHA Compliance for Janitorial in New Jersey →
- Workers' Comp Class 9014 in New Jersey →