Assembly Democrats: Pair of Prevailing Wage Protection Measures Signed Into Law

PAIR OF PREVAILING WAGE PROTECTION MEASURES SIGNED INTO LAW

Legislation Closes Loopholes in Existing Law,Ensures Workers Receive Fair Pay

(TRENTON) - Two pieces of prevailing wage protection legislation sponsored by Assemblyman Joseph V. Egan were signed into law today by Acting Governor Richard J. Codey during a public ceremony at the New Jersey Department of Labor and Workforce Development.

The new laws will close loopholes in the state's current "Prevailing Wage Act," preventing contractors from setting up dummy corporations to avoid paying prevailing wages to employees and allowing the termination of contractors refusing to pay workers a prevailing wage on public projects.

"These measures will do much to close loopholes in our existing prevailing wage legislation that were being exploited by unscrupulous contractors and businesses," said Egan (D-Middlesex), the chairman of the Assembly Labor Committee. "We have a responsibility to help New Jersey's working class families and ensure that the financial protections they have under the law are not eroded."

New Jersey already has one of the toughest prevailing wage laws in the country. The current "Prevailing Wage Act," signed into law in early 2004, stipulates that prevailing wages be paid on all contracts for public projects.

The first measure signed into law (A-3889) prohibits debarred contractors from setting up a new corporation or changing the name of an existing corporation to avoid paying employees a prevailing wage. It specifically addresses debarments resulting from a firm's failure to pay the prevailing wage on public works, and also prohibits debarred contractors and subcontractors from having any interest in a company bidding on public work. The measure is sponsored by Egan and Assemblymen Jeff Van Drew and Fred Scalera.

"Men and women on public works projects in the state deserve to receive fair compensation for their time and effort," said Van Drew (D-Cape May), the vice-chair of the Assembly Labor Committee. "Strengthening our prevailing wage protections will help prevent working families from being abused by dishonest businesses looking to cut corners wherever they can."

"This law gives the Department of Labor a powerful tool to help ensure that everyone is paid a fair wage for a fair day's work," said Scalera (D-Essex), a member of the Assembly Labor Committee. "Dishonest contractors will no longer be able to escape paying employees a proper wage through legal trickery."

The second measure signed into law (A-3890) further strengthens the current "Prevailing Wage Act" in two important respects. It authorizes terminations of contractors' or subcontractors' work for failure to pay prevailing wages in capital projects involving leased properties. And it clarifies the definition of public works, specifying that a prevailing wage must be paid for work completed on a public building - even if that project is not paid for with public funds. The measure is sponsored by Egan, Van Drew and Assemblyman Paul Moriarty.

"As New Jersey continues to grow, we must ensure that the state does business with contractors who are on the up and up," said Moriarty (D-Gloucester). "These added protections will ensure that everyone working on state projects receive appropriate, livable wages."

Both laws take effect immediately and apply to all future public contracts.

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