With the summer construction season upon us, the Murphy Administration is reminding school boards and local governments of their role in protecting workers and expanding skilled apprenticeship programs – and their obligations under the New Jersey Prevailing Wage Act.
The New Jersey Department of Labor and Workforce Development and its partners at the New Jersey Department of Community Affairs’ Division of Local Government Services, and the New Jersey Department of Education, recently sent a letter reminding boards of education and local governments of their responsibilities under the New Jersey Prevailing Wage Act.
The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) establishes a prevailing wage for workers engaged in public work to safeguard workers and employers alike from unfair competition due to detrimental wage levels. 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.
“The New Jersey Department of Education understands the significance of New Jersey’s Prevailing Wage Law, and the importance of compliance with the requirements,” said Dr. Angelica Allen-McMillan, acting commissioner of education. “I am pleased to join my colleagues in the New Jersey Department of Labor and Workforce Development to raise awareness among stakeholders in the education community regarding changes in the Act.”
The state wants to make sure public bodies are aware of their responsibilities when working with contractors or subcontractors, including:
- Ensuring that the appropriate prevailing wage determination(s) are contained within the contract between the public body and the general contractor.
- Ensuring that certified payrolls are submitted weekly for all work performed subject to the NJPWA.
- Checking the NJDOL website prior to awarding a contract to confirm the contractor and any named subcontractors are registered with the NJDOL as public works contractors under the NJPWCRA and do not appear on the list of ineligible bidders by virtue of debarment or outstanding judgments.
- Establishing and maintaining a process for collecting certified payroll records and making them accessible to the public and NJDOL for review.
- When the lowest bid for a contract for public work is at least 10% lower than the next lowest bid, ensuring that, prior to awarding the contract, the lowest bidder submits a written certification stating that the contractor will pay all workers the prevailing wage rate.
Additionally, Gov. Phil Murphy signed A-3666 in 2019, which mandated that construction contractors performing public work participate in a USDOL registered apprenticeship program. Registered apprenticeship is a proven model for creating a skilled, dedicated workforce. Employers with programs have seen a huge return-on-investment, lower turnover rates and fewer errors from participants. The apprenticeship model also reinforces positivity in the work environment by enabling participants to earn wages for skills learned.
The full letter may be viewed here.
For more information on New Jersey’s wage and hour laws, visit myworkrights.nj.gov.