New Jersey

The New Jersey Prevailing Wage Act states that laborers, craftsmen and apprentices employed on public works projects are entitled to an appropriate craft prevailing wage rate determined by the Commissioner of Labor and Workforce Development. Projects for public works that are funded entirely or partially by a public entity are subject to the Act. For contracts directly awarded by municipal government to be covered by the Act, they must be worth at least $16,263. The limit is $2,000 for all other public entities, such as boards of education and municipal utility authorities.

Public body officials or their representatives must apply for an official New Jersey Prevailing Wage Rate Determination, which is required for all public work contracts.

Compliance Tips

  • Any contract-based construction, reconstruction, demolition, alteration, repair, or maintenance work, including painting and decorating, that is funded entirely or in part by public funds is referred to as public work, with the exception of work carried out as part of a rehabilitation program. Public work can also include such work, whether or not paid from public funds, if:
    • 55% or more of the property is leased or subsequently leased by the public body.
    • Portion of the property, leased or subsequently leased by the public body, is more than 20,000 square feet.
  • Contractor registration with the Division of Wage and Hour Compliance is necessary in order to bid on or engage in a public work contract subject to the Prevailing Wage Act.
  • The prevailing wage rate is determined by the contract award date, scope of work and location (county or statewide) of the work performed.

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