S4691: NJ's Two-Thirds Minimum Wage Training Rate for Teen Workers

Most New Jersey transportation and trucking business owners don't realize that S4691—a bill focused on training wages for minors—contains a provision that could meaningfully reduce labor costs when hiring 14- to 16-year-olds in qualifying training programs. Understanding what it does, and what it doesn't, matters for payroll decisions.

What the Provision Does

Section 1 of S4691 amends subsection g. of New Jersey's minimum wage statute to create a new training wage tier specifically for employees aged 14–16. Under this provision, employers may pay as little as two-thirds of the current minimum wage during the first 120 hours of employment—provided the worker is enrolled in a qualifying training program.

To put this in practical terms: instead of the standard 90% training wage available to older workers, younger teens can legally earn 66.7% of minimum wage during their initial training period. For a small fleet or logistics operation bringing on a teen for administrative, warehouse, or entry-level roles tied to a formal training curriculum, this represents a material reduction in hourly labor costs.

Who This Affects

The provision applies only to employees aged 14–16 and only when three conditions are met:

1. The employee must be enrolled in a qualifying training program (typically defined as structured, employer-sponsored instruction with defined learning objectives).
2. The reduced rate applies only during the first 120 hours of employment.
3. After 120 hours, the employee must transition to the standard minimum wage or applicable training wage rate.

This is narrower than it might sound. If you hire a 14-year-old for a summer job with no formal training component, the standard minimum wage applies. The provision only works when there's a documented training program in place.

Timing and Effective Date

S4691 became effective immediately upon enactment (Section 2). The underlying training wage framework it modifies has been in place since January, so employers should already be familiar with how training wages work in New Jersey. This provision simply adds a lower tier for the youngest workers during their first 120 hours in a training role.

What This Means for Your Business

If your operation regularly hires teenagers for entry-level or seasonal roles—whether in dispatch, warehouse management, vehicle maintenance, or administrative support—and you can structure those positions around a formal training program, this provision creates a legitimate cost advantage during the onboarding phase.

However, the requirement for a qualifying training program is not optional. Paying the two-thirds rate without a documented curriculum in place exposes you to wage and hour liability. The 120-hour window is also strict; after that period, you must pay at least minimum wage.

Transportation and logistics businesses should review their hiring practices and training protocols to determine whether this provision applies to any current or planned roles. If it does, documenting the training program—its content, duration, and learning outcomes—is essential to staying compliant.

This explainer is based on Section 1 of S4691, amending N.J.S.A. 34:11-56g, effective upon enactment. For detailed guidance tailored to your specific operation, consult your employment counsel or contact your industry association.