The basics:
NJRHA is prioritizing protections for tipped wages
Group wants to reduce credit card processing fees
Liquor license reforms are among recent legislative wins
NJRHA is focused on labor rules, tourism and sustainability
The New Jersey Restaurant & Hospitality Association is heading into a new legislative session with a broad agenda aimed at easing some of the costs and rules that can make it harder to do business. Ahead of lawmakers’ return to Trenton in September, the statewide trade group chatted with NJBIZ about its priority areas, such as reducing credit card processing fees and protected tipped wages.
NJRHA also recapped recent legislative wins, as well as other areas it would like to see lawmakers address in the future.
Based in Trenton, NJRHA provides advocacy, education and resources to its 20,000-plus member restaurants, foodservice establishments and hospitality businesses. The organization puts the sector’s economic footprint at more than $40 billion in sales and over 366,000 jobs.
Stone
NJHRA Vice President of Public Affairs Amanda Stone said, “Our priorities are always going to be making sure that, obviously, our businesses can do what they’re good at doing and without any regulations or anything coming out of Trenton that makes it harder for them. The biggest thing is making sure that, overall, there’s a good business climate.”
Tipping points
Protecting the state’s tipped-wage system remains a top legislative priority even as lawmakers have not recently advanced any proposals to eliminate it. Under the current system, tipped workers receive a lower direct wage from their employer because tips make up part of their compensation. Besides allowing tipped workers the ability to earn well above minimum wage via tips, the system can help restaurants keep labor and menu costs lower, NJRHA said.
Abolishing the tip credit could lead to higher labor costs that could potentially result in increased prices for consumers or reduced employment opportunities in the hospitality industry, the organization argues.
A 2025 NJRHA survey of almost 400 tipped workers in New Jersey found that 89% preferred the current system over a flat wage model. And 82% believe eliminating the tip credit would lessen their earnings.
“Our number one thing is always going to be protecting the tip wage,” Stone said. “[I]t’s always a conversation that we’re having with legislators and reminding them about this issue and how critical it is to our industry.”
A 2025 NJRHA survey of almost 400 tipped workers in New Jersey found that 89% preferred the current system over a flat wage model. And 82% believe eliminating the tip credit would lessen their earnings. – DEPOSIT PHOTOS
In the U.S., there are a few states, including California, Nevada and Alaska, that require full minimum wage for tipped workers with no tip credit. Others, like Illinois, New York, Massachusetts and Connecticut, are trying to phase it out but have encountered opposition from the restaurant industry over cost concerns.
Taking a swipe
NJRHA is currently working with legislators on a measure that would prohibit credit card and debit card processors from applying swipe fees to the sales tax and gratuity portions of restaurant bills, according to Stone.
After being introduced May 28 by state Sens. Joseph Lagana, D-38th District, and Vin Gopal, D-11th District, the bill was referred to the Senate Commerce Committee. A companion bill was backed by Assemblymen Roy Frieman, D-16th District, and Robert Karbinchak, D-18th District.
Presently, restaurant owners pay processing fees on the entire bill, including sales tax and gratuities, even though they don’t keep that money. Stone said NJRHA believes the fees add an unnecessary cost because sales tax goes to the state, and tips go to workers.
“Our legislation would look at that and take off any credit card fees off of the sales tax and gratuity portion of a bill,” Stone said. “… In the end, it could save a full-service restaurant up to $7,500 a year.”
The New Jersey Restaurant & Hospitality Association is working with legislators on a measure that would prohibit credit card and debit card processors from applying swipe fees to the sales tax and gratuity portions of restaurant bills. – DEPOSIT PHOTO
“It’s something we’re going to pursue once they come back and hopefully get that moving through the committees. And, ultimately, would love to see it signed to give small businesses a break,” Stone said.
Similar legislation has been introduced in several other states, including New York, Texas, Vermont and Delaware. In 2024, Illinois became the first state to pass a law that would stop credit card companies from charging interchange fees on sales tax and tips.
However, the July 2026 implementation has been delayed a year amid a legal challenge from banking groups that argue federal law prevents states from regulating such fees. A federal judge recently blocked the Illinois law from being enforced against some banks and major payment networks while the case moves forward.
NJRHA is keeping an eye on what happens there, according to Stone.
Taking credit
NJRHA also said it backs the federal Credit Card Competition Act. The bipartisan measure would require large credit card issuers to allow processing transactions over at least two unaffiliated payment networks. By increasing competition with Visa and Mastercard, supporters believe the bill could lower processing fees for merchants.
Following a January reintroduction, both the Senate and House versions were sent to committees and failed to advance to a vote.
The legislation has been proposed in several Congresses since 2022 but has yet to pass. It has faced opposition from banks and the credit card industry, which argue the requirement could reduce rewards programs, increase borrowing costs and raise payment security concerns.
Klim
NJRHA President and CEO Daniel Klim said, “Some people are staying in cash base or offering discounts … because the duopoly run by MasterCard and Visa controls 80% of the marketplace and the fees are just too damn high.
“And it’s a take it or leave it with the credit card processors. We have an independent restaurant out in Somerset County that estimated last year that he paid somewhere between $250,000 and $300,000 in credit card fees alone. So, credit card processing has moved into one of the top three expenses for a small restaurant in New Jersey,” Klim said.
“I don’t think anybody has an issue with the cost of doing business or paying for the processing, but when you’re getting hit with fees that are costing you a quarter million dollars or more in a small business, those are real dollars and decisions that you have to make about how I’m going to proceed with accepting payments,” Klim said, adding, “And listen, this is coming from a guy who rarely carries cash.”
Victory lap
As for recent legislative wins, Stone pointed to NJRHA’s work with other industry groups to oppose a controversial plan that would have hiked sales taxes while New Jersey hosted the 2026 FIFA World Cup. Under Senate Bill 4111, the state would have imposed temporary surcharges on hotels and online sports statewide as well as for certain ridehailing trips and sales transactions in the Meadowlands.
Introduced by state Sen. Paul Sarlo, D-36th District, and Assemblyman Michael Venezia, D-34th District, the measure sought to help New Jersey recover the some of the costs associated with hosting eight World Cup matches at MetLife Stadium rather than passing it onto taxpayers.
While the proposal drew support from Democrats, including Gov. Mikie Sherrill, it faced opposition from Republicans and business interests. The bill ultimately stalled without receiving a committee hearing.
Stone said NJRHA teamed up with a coalition of industry groups to raise concerns over increased costs for businesses and residents. “It would’ve been up to 10% added on taxes, especially in the Meadowlands area, during the World Cup time if that legislation went through … We expressed our concerns and talked to the legislators about it that we met with. They really understood the burden would not be on the visitors, but on the people that live and have businesses here,” she said. “We really appreciate their willingness to listen to our concerns. Thankfully, that didn’t go through.”
Other changes a-brewin’
NJRHA is also cheering for long-sought changes to the state’s liquor license laws that aim to make it easier to transfer inactive licenses between municipalities. The legislation, recently signed by Sherrill, also grants towns more flexibility to keep inactive licenses from expiring.
The measure introduced by Gopal and Assemblywoman Luanne Peterpaul, D-11th District, also loosens some state-imposed restrictions on craft breweries and other small alcohol producers. That includes allowing more on-site and off-site events, greater food-service flexibility, and broader opportunities to sell and serve their products.
Stone said, “If you remember under Murphy … the law did a couple of things, but the biggest was mandating active licenses get back on the market and really cut down on that.”
NJRHA is cheering for long-sought changes to the state’s liquor license laws that aim to make it easier to transfer inactive licenses between municipalities. – DEPOSIT PHOTOS
Under a law signed in January 2024 by then-Gov. Phil Murphy, the state sought to activate pocket licenses – inactive liquor licenses that have not been used by a restaurant or bar for at least eight years. According to the law, if a license remains dormant for two years, it will expire and a municipality can then auction it off to a new business or opt to extend it for another year. Additionally, towns are able to transfer one dormant license per year, and two every five years, to a bordering municipality in need.
The Alcoholic Beverage Control estimated that the changes would return as many as 1,356 licenses back to the market. That would represent a roughly 15% increase over the 8,905 active retail consumption licenses in use, the state has said.
Communities are now also able to issue special licenses at shopping malls. The change allows two additional slots for towns with malls larger than 750,000 square feet and four in towns that have malls larger than 1.5 million square feet.
Liquor license background
Since 1947, New Jersey has restricted the number of liquor licenses a municipality can grant based on population. Under the law, towns can issue one consumption license for every 3,000 residents, making the ability to sell alcohol a highly coveted right in New Jersey — one that business owners are willing to shell out as much as $1 million to secure via the private market.
Stone said the law signed by Murphy two and a half years ago “needed a cleanup bill from day one.” She added that the newly enacted bill is “part of that push to get the inactives back in the system.”
[G]etting these inactives [liquor licenses] back into the system and in use is another win.
– Amanda Stone, vice president of public affairs, NJHRA
It aims to bring dormant liquor licenses back into use by allowing certain inactive licenses to be transferred to municipalities anywhere in New Jersey, rather than limiting transfers to neighboring towns. It also allows municipalities to put licenses up for public sale, with the license going to the highest-bidding municipality in the state.
Stone said, “It’s really just another step in making sure that these inactive licenses or new licenses, however it comes into municipality’s hands, gives the ability to spread them out and really get them back into the market for the people who do want to buy them and still obviously have fair market value. So, getting these inactives back into the system and in use is another win.”
World view
Ahead of the World Cup and America’s 250th anniversary kickoff this summer, NJRHA began ramping up efforts to showcase the state’s hospitality industry. That’s included the launch of a campaign designed to connect residents and visitors with restaurants, hotels and entertainment destinations across New Jersey. The initiative also includes resources to help owners and operators market their businesses and prepare for increased tourism this summer.
Klim said, “It may not be considered a legislative win, but the favorable outlook that the state had after the World Cup in the world’s eyes in terms of hospitality is starting to drive some of our agenda and communications with the state about, how do we make New Jersey a culinary or a destination for national and international visitors more so than just when big events happen?
“I’ll put our food up against anybody in the country or even the world. We have some of the best chefs, some of the best restaurants, some of the best experiences,” he said. “And the association wants to be a part of the conversations on how we leverage more tourism opportunities for people to come to New Jersey, to stay in our hotels, to eat at our restaurants and to take advantage of our attractions. And we want to be part of that … each month through the year.”
I’ll put our food up against anybody in the country or even the world. We have some of the best chefs, some of the best restaurants, some of the best experiences.
– Daniel Klim, president and CEO, NJRHA
“You’ll see that become part of our focus to see how we can work with the Legislature, to see how we can work with the Department of State or the governor’s office to figure out ways of making New Jersey a culinary destination,” Klim added.
Promoting New Jersey
To make that happen, Klim said the state needs to leverage events like the World Cup and America’s 250th. The nationwide celebration of the nation’s founding runs through 2033, which will mark the 250th anniversary of the treaty that formally ended the Revolutionary War.
“Why does Williamsburg get tourism right? Why does Gettysburg get tourism? Why does Boston get tourism right? And in New Jersey, we are the epicenter of history, and we haven’t leveraged it in a meaningful sense to gain additional participation or attraction of people coming here,” Klim said.
Ahead of the 250th anniversary of the signing of the Declaration of Independence, the state began work on a new visitor center for Washington Crossing State Park. – PROVIDED BY NJDEP
“We have some of the best diners in the world, so maybe creating a diner trail. Or a golf course trail,” he mused. “Everybody talks about who’s got the best chicken farm. Well, maybe there can be a chicken farm trail.”
Klim went on, “We as an association are partnering with groups like the tourism industry or the Department of State to be able to leverage all of the great things about New Jersey and start to promote ourselves a little bit more aggressively, especially between Philadelphia and New York City.”
Stone added that Lt. Gov. Dale Caldwell, who oversees tourism as New Jersey’s secretary of state, appears to be “very receptive and very interested in moving tourism forward and actually giving it the spotlight and attention that it needs.”
“We’re optimistic about the work we’ve done with him already and conversations we’ve had and are continuing. With him overseeing that division now, I think that hopefully there will be a real push from the state to have the coordinated effort that we as a state deserve in this area,” she said.
Going into labor
In terms of labor issues, Klim said NJRHA is talking with state Sen. Joe Cryan, D-20th District, to make proposed workplace heat-safety standards workable for restaurants and hospitality businesses.
The association also hopes to meet with the state’s new acting Labor Commissioner Kevin Jarvis “to see how we can support some of the things that they’re looking to do as they work through their department per se,” Klim said.
NJRHA recently sat down with ABC acting Director Paul Thomas Urbish and “had a really fruitful conversation about how he’s looking to streamline process, make processes more efficient,” Klim added.
Sustainable sustainability
While New Jersey prohibits single-use plastic bags and most paper bags, until recently there was no policy for disposable cutlery, condiments, or other food and beverage accessories. At the state level, plastic utensil bans have stalled largely because of pushback from the restaurant industry, concerns about costs for small businesses and enforcement complexity. As a result, some municipalities, such as Hoboken, Red Bank, Garwood and Eatontown, have put measures in place prohibiting food providers from offering single-use utensils. New York City, California and Washington state have similar bans.
New Jersey prohibits single-use plastic bags and most paper bags. – DEPOSIT PHOTOS
In an effort to minimize litter, conserve resources and reduce the number of items in the waste stream, state Sens. Bob Smith, D-17th District, and Raj Mukherji, D-32nd District, introduced a New Jersey-wide measure. State Assembly members Alixon Collazos-Gill, D-27th District; Margie Donlo, D-11th District; and Shama Haider, D-37th District, backed companion legislation.
The Senate approved the measure in a narrow 21-15 vote. It passed the Assembly 43-24.
As of Aug. 1, New Jersey restaurants are prohibited from providing plastic utensils and condiment packets unless a customer specifically requests them. Under the bill signed into law last January by outgoing Gov. Murphy, the rule applies to dine-in, take-out, delivery or drive-thru orders at restaurants, cafés, food trucks, vendor stations and cafeterias.
Other key changes include:
Online ordering systems must default to “no utensils or condiments” and require customers to actively opt in
Full-service dine-in restaurants with seating for 10 or more customers must provide reusable utensils for sit-down meals
Self-serve dispensers may still be used if they dispense individual items rather than bundled cutlery packs
Pre-packaged food items with single-use utensils or condiments attached during manufacturing, as well as single-use sauce cups for dine-in service, do not need to comply with the regulations.
The law exempts schools for five years and restaurants in food courts for two years. Healthcare facilities and correctional facilities are also exempt under some circumstances.
Practical solutions
Stone said, “Our industry is incredibly supportive of sustainability and has been proactive and becoming more sustainable over the years. Does the industry or any business love to see more regulations coming out of Trenton? No. But we worked with Sen. Smith and his team for a while on it. And what was introduced to what is law is incredibly different in a good way.”
“What they put out originally had the intent of obviously reducing waste. But when it came to being practical in a restaurant, it wasn’t. So, working with his team to take their intent and make it practical on where utensils can be placed and how. A lot of different things down to the availability of a souffle cup to put your salad dressing in,” she explained.
Stone said, “We kind of finessed it into a real-world scenario. Again, we don’t love regulations, but at the end of the day … we’re happy with it in that it gave businesses the ability to still run their business like they usually would. I think our industry and Sen. Smith’s team are happy with it.
“I think we saw the writing on the wall. I mean, we were seeing ‘Skip the Stuff’ laws pop up in different municipalities throughout the state … We just want continuity for multiple restaurants with multiple locations,” Stone said, adding, “I think the preemptive statewide bill was going to be needed in the end anyways.
