Bill Text: NJ A5035 | 2026-2027 | Regular Session | Introduced
Bill Title: Prohibits use of prevailing wage fringe benefit portion of prevailing wage rate to fund certain bonus programs.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-05-11 - Introduced, Referred to Assembly Labor Committee [A5035 Detail]
Download: New_Jersey-2026-A5035-Introduced.html
Sponsored by:
Assemblyman WAYNE P. DEANGELO
District 14 (Mercer and Middlesex)
SYNOPSIS
Prohibits use of prevailing wage fringe benefit portion of prevailing wage rate to fund certain bonus programs.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning prevailing wage fringe benefits and supplementing P.L.1963, c.150 (C.34:11-56.25 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. An employer shall not deduct, withhold, or otherwise use any portion of the fringe benefit portion of the prevailing wage rate to fund a bonus, incentive, productivity, retention, or similar compensation program, regardless of whether the payment is guaranteed, discretionary, or contingent.
b. An employer shall not require or automatically enroll an employee in a wage-specific pension, annuity, or other retirement program established for the purpose of satisfying all or part of the fringe benefit portion of the prevailing wage rate without prior written consent from the employee.
c. An employee who declines to participate in a wage-specific pension, annuity, or other retirement program pursuant to subsection b. of this section shall receive the fringe benefit portion of the prevailing wage rate through other means permitted under the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.).
d. This section shall not apply to an employee who is employed by an employer that is signatory to a collective bargaining agreement that was, or is, the basis for a determination of the prevailing wage pursuant to section 6 of P.L.1963, c.150 (C.34:11-56.30).
2. This act shall take effect immediately.
STATEMENT
This bill prohibits the use of the prevailing wage fringe benefit portion of prevailing wage rate to fund bonus, incentive, productivity, retention, or similar compensation programs, regardless of whether the payment is guaranteed, discretionary, or contingent.
Under the bill, an employer is prohibited from requiring or automatically enrolling an employee in a wage-specific pension, annuity, or other retirement program established for the purpose of satisfying all or part of the fringe benefit portion of the prevailing wage rate without prior written consent from the employee.
An employee who declines to participate in a wage-specific pension, annuity, or other retirement program will receive the fringe benefit portion of the prevailing wage rate through other means permitted under the "New Jersey Prevailing Wage Act."
The bill does not apply to an employee who is employed by an employer that is signatory to a collective bargaining agreement that was, or is, the basis for a determination of the prevailing wage.
