Acting governor signs legislation closing prevailing wage loopholes

TRENTON, april 26, 2007.- On behalf of the Corzine Administration, Acting Governor Richard J. Codey today signed two pieces of legislation closing loopholes in New Jersey's prevailing wage laws.

"This legislation builds on the tremendous progress we've made with our prevailing wage laws," said Acting Governor Codey. "It closes the loopholes that have allowed a few contractors to shortchange New Jersey's working families, preserves a level playing field, and helps ensure that people who work hard and play by the rules have a fair chance to earn a living and support a family."

"This legislation strengthens our Prevailing Wage Act and provides the Department of Labor and Workforce Development with stronger tools to protect the wages of the men and women who build our vital infrastructure - roads, bridges, health care facilities, schools and other crucial structures," said Labor Commissioner David J. Socolow.

Under A3890/S2457, construction work on publicly-owned property is now subject to the Prevailing Wage law, even when the property is leased to a private business and the private business contracts for the construction work.

The second piece of legislation, A3889/S2458 gives the Department new tools to more effectively enforce the Prevailing Wage Act. This legislation makes it harder for debarred contractors to reconstitute their businesses under a new name to continue to bid on publicly funded construction projects. A debarred company is not eligible to bid on these contracts during the three-year term of their debarment.

The new law also empowers the Department to immediately suspend the registration of a contractor that faces revocation of that registration for serious violations or a pattern of violations of the Prevailing Wage law. The registration will remain suspended until the case for revocation is decided.

"Now, we have one more assurance that workers will receive a living wage for their families," said Senator Joseph V. Doria, (D-Hudson). "This law takes out any ambiguity that contractors may use to sidestep our prevailing wage law."

"We need to do all that we can to help working families," said Assemblyman Joseph V. Egan (D-Middlesex). "The financial protections that unions have earned for hard-working men and women must not be eroded."

"Making sure contractors and subcontractors are paying a prevailing wage is only fair," said Jeff Van Drew (D-Cape May/Atlantic/Cumberland). "These measures close loopholes that would have allowed contractors or subcontractors to circumvent the state's prevailing wage protections."

A3890/S2457 was sponsored in the Assembly by Assemblypersons Joseph V. Egan (D-Middlesex, Somerset), Jeff Van Drew (D-Cape May, Atlantic, Cumberland), Paul D. Moriarty (D-Camden, Gloucester), Valerie Vainieri Huttle (D-Bergen), and Linda R. Greenstein (D-Mercer, Middlesex) It was sponsored in the Senate by Senator Joseph V. Doria (D-Hudson).

A3889/S2458 was sponsored in the Assembly by Assemblypersons Joseph V. Egan (D-Middlesex, Somerset), Jeff Van Drew (D-Cape May, Atlantic, Cumberland), Frederick Scalera (D-Bergen, Essex, Passaic), Neil M. Cohen (D-Union), and Linda R. Greenstein (D-Mercer, Middlesex). It was sponsored in the Senate by Senators Fred H. Madden, Jr. (D-Camden, Gloucester) and Ellen Karcher, (D-Monmouth).