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Wage & Hour and Contract Compliance

Prevailing Wage Rates on Construction-Related Public Works Projects

Two men at construction site shaking hands

The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) establishes a prevailing wage level for workers engaged in public works in order to safeguard the worker’s efficiency and general well-being, and to protect them as well as their employers from the effects of serious and unfair competition resulting from wage levels that are detrimental to the efficiency and well-being of all concerned.

The Act requires the payment of minimum rates of pay to laborers, craftsmen, and apprentices employed on public works projects. Covered workers must receive the appropriate craft prevailing wage rate as determined by the Commissioner of Labor and Workforce Development.

Overview

Prevailing wage rates are wage rates based on the collective bargaining agreements established for a particular craft or trade in the locality in which the public work is performed. In New Jersey, these rates vary by county and by the type of work performed.

Public works projects subject to the Act are those funded in whole or in part with the funds of a public body. Contracts awarded directly by municipal government must be valued at $16,263 or more to be covered by the Act. For all other public entities, including municipal utility authorities and boards of education, the threshold is $2,000.

Anyone interested in bidding on or engaging in any contract (or part thereof) for public work which is subject to the provisions of the Prevailing Wage Act must register with the Division of Wage and Hour Compliance as required by the Public Works Contractor Registration Act (PWCRA) P.L. 1999, c.238-N.J.S.A. 34:11-56.48 et seq., which establishes a unified procedure for the registration of contractors and subcontractors engaged in public works building projects. The PWCRA requires an annual registration fee of $300. After successful completion of two consecutive years of registration, a contractor may elect to register for a two-year period and pay a registration fee of $500.

Upon registration, the contractor and/or subcontractor will be issued a certificate indicating compliance with the requirements of the Act. Public bodies are expected to require proof of registration of all contractors bidding on the project and all subcontractors identified in such bids.

Definition of Public Contracts Work

Public work means any construction, reconstruction, demolition, alteration or repair work, or maintenance work, including painting and decorating, done under contract and paid for in whole or in part out of the funds of the public body, except work performed under a rehabilitation program. Public work also means construction, reconstruction, demolition, alteration, or repair work done on any property or premises, whether or not the work is paid from public funds, if at the time of entering into the contract:

Regulations

The Division of Wage and Hour Compliance Public Contracts Section regulates the payment of prevailing wage rates on public work projects through:

The Act and regulations requires every contractor or sub-contractor performing public work for a public body to maintain the following records: