Bill Text: NJ S4529 | 2026-2027 | Regular Session | Introduced
Bill Title: Excludes certain properties from definition of public work and payment of prevailing wage under certain conditions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced) 2026-06-26 - Introduced in the Senate, Referred to Senate Labor Committee [S4529 Detail]
Download: New_Jersey-2026-S4529-Introduced.html
Sponsored by:
Senator VIN GOPAL
District 11 (Monmouth)
SYNOPSIS
Excludes certain properties from definition of public work and payment of prevailing wage under certain conditions.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning prevailing wage requirements on certain properties and amending P.L.1963, c.150.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. Section 2 of P.L.1963, c.150 (C.34:11-56.26) is amended to read as follows:
2. As used in this act:
(1) "Department" means the Department of Labor and Workforce Development of the State of New Jersey.
(2) "Locality" means any political subdivision of the State, combination of the same or parts thereof, or any geographical area or areas classified, designated and fixed by the commissioner from time to time, provided that in determining the "locality," the commissioner shall be guided by the boundary lines of political subdivisions or parts thereof, or by a consideration of the areas with respect to which it has been the practice of employers of particular crafts or trades to engage in collective bargaining with the representatives of workers in such craft or trade.
(3) "Maintenance work" means the repair of existing facilities when the size, type or extent of such facilities is not thereby changed or increased. "Maintenance work" also means any work on a maintenance-related project that exceeds the scope of work and capabilities of in-house maintenance personnel, requires the solicitation of bids, and has an aggregate value exceeding $50,000.
(4) "Public body" means the State of New Jersey, any of its political subdivisions, any authority created by the Legislature of the State of New Jersey and any instrumentality or agency of the State of New Jersey or of any of its political subdivisions.
(5) "Public work" means construction, reconstruction, demolition, alteration, custom fabrication, duct cleaning, or repair work, or maintenance work, including painting, and decorating, done under contract and paid for in whole or in part out of the funds of a public body, except work performed under a rehabilitation program. "Public work" shall also mean construction, reconstruction, demolition, alteration, custom fabrication, duct cleaning, or repair work, done on any property or premises, whether or not the work is paid for from public funds, if, at the time of the entering into of the contract the property or premises is owned by the public body or
(a) Not less than 55% of the property or premises is leased by a public body, or is subject to an agreement to be subsequently leased by the public body; and
(b) The portion of the property or premises that is leased or subject to an agreement to be subsequently leased by the public body measures more than 20,000 square feet.
(c) Notwithstanding the provisions of this subsection to the contrary, public work shall not include construction, reconstruction, demolition, alteration, custom fabrication, repair work, or maintenance work undertaken on a property or premise owned by or otherwise under the control of a public body if:
(i) the property or premises is located within a distressed area;
(ii) at the time the work is performed, the property or premises is under the exclusive control of any entity which is not a public body or acting as an agent of a public body for a temporary event, activation, or other limited-duration private use;
(iii) at the time the work is performed, the property or premise is not open to the general public except as permitted, including but not limited to circumstances in which admission is limited by ticket, credential, or invitation; temporary fencing, barricades, gates, or similar access-control measures are installed; or private or contracted security personnel regulate entry;
(iv) the work is temporary in nature, including work related to staging, platforms, lighting systems, sound systems, tents, temporary structures, or similar installations used for events or gatherings; is performed solely to support the temporary use of the premises; and does not exceed 21 calendar days in duration, including installation and removal; and
(v) the work does not result in permanent structural improvements.
(6) "Commissioner" means the Commissioner of Labor and Workforce Development or his duly authorized representatives.
(7) "Workman" or "worker" includes laborer, mechanic, skilled or semi-skilled, laborer and apprentices or helpers employed by any contractor or subcontractor and engaged in the performance of services directly upon a public work, regardless of whether their work becomes a component part thereof, but does not include material suppliers or their employees who do not perform services at the job site. For the purpose of P.L.1963, c.150 (C.34:11-56.25 et seq.), contractors or subcontractors engaged in custom fabrication shall not be regarded as material suppliers.
(8) "Work performed under a rehabilitation program" means work arranged by and at a State institution primarily for teaching and upgrading the skills and employment opportunities of the inmates of such institutions.
(9) "Prevailing wage" means the wage rate paid by virtue of collective bargaining agreements by employers employing a majority of workers of that craft or trade subject to said collective bargaining agreements, in the locality in which the public work is done.
(10) "Act" means the provisions of P.L.1963, c.150 (C.34:11-56.25 et seq.) and the rules and regulations issued hereunder.
(11) "Prevailing wage contract threshold amount" means:
(a) In the case of any public work paid for in whole or in part out of the funds of a municipality in the State of New Jersey or done on property or premises owned by a public body or leased or to be leased by the municipality, the dollar amount established for the then current calendar year by the commissioner through rules and regulations promulgated pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which amount shall be equal to $9,850 on July 1, 1994 and which amount shall be adjusted on July 1 every five calendar years thereafter in direct proportion to the rise or fall in the average of the Consumer Price Indices for Urban Wage Earners and Clerical Workers for the New York metropolitan and the Philadelphia metropolitan regions as reported by the United States Department of Labor during the last full calendar year preceding the date upon which the adjustment is made; and
(b) In the case of any public work other than a public work described in paragraph (a) of this subsection, an amount equal to $2,000.
(12) "Custom fabrication" means:
(a) the fabrication of any of the following: plumbing, heating, cooling, ventilation or exhaust duct systems, mechanical insulation, or one or more signs in a project which cost a total of more than $30,000 and are part of a project upon completion; or
(b) any other fabrication which is one or more entire modules or structures pre-fabricated to specifications for a particular project of public work with minimal construction work remaining other than installation, regardless of whether unforeseen construction work is required on the public work site to modify the custom fabricated item for the purpose of installation, for use in a project of public work or for use in a type or classification of a project of public work. "Custom fabrication" shall not include components or materials, such as structural steel members or precast concrete, or smaller prefabricated components.
(13) "Distressed area" means:
(a) a municipality designated as an Urban Enterprise Zone pursuant to P.L.1983, c.303 (C.52:27H-60 et seq.);
(b) a municipality or census tract designated as eligible for economic development incentive programs or redevelopment assistance by the New Jersey Economic Development Authority due to indicators of economic distress, including but not limited to elevated unemployment rates, poverty levels, or below-average median income;
(c) a census tract designated as a qualified opportunity zone pursuant to federal law; or
(d) any municipality, census tract, or defined geographic area that, pursuant to rules or regulations adopted under this act, exhibits conditions of economic distress warranting designation as a distressed area for the purposes of this section, as determined by the commissioner.
(cf: P.L.2023, c.133, s.1)
2. This act shall take effect immediately.
STATEMENT
This bill excludes work on certain properties from the definition of "public work" for purposes of prevailing wage requirements.
Under the bill, the definition of "public work" does not include, reconstruction, demolition, alteration, custom fabrication, repair work, or maintenance work undertaken on a property or premise owned by or otherwise under the control of a public body if:
(1) the property or premises is located within a distressed area, as defined in the bill;
(2) at the time the work is performed, the property or premises is under the exclusive control of any entity which is not a public body or acting as an agent of a public body for a temporary event, activation, or other limited-duration private use;
(3) at the time the work is performed, the property or premise is not open to the general public except as permitted, including but not limited to circumstances in which admission is limited by ticket, credential, or invitation; temporary fencing, barricades, gates, or similar access-control measures are installed;
(4) the work does not exceed 21 calendar days in duration, including installation and removal; and
(5) the work does not result in permanent structural improvements.
Under the provisions of the bill, a "distressed area" is defined to include:
(1) a municipality designated as an Urban Enterprise Zone;
(2) a municipality or census tract designated as eligible for economic development incentive programs or redevelopment assistance by the New Jersey Economic Development Authority due to indicators of economic distress, including, but not limited to elevated unemployment rates, poverty levels, or below-average median income;
(3) a census tract designated as a qualified opportunity zone pursuant to federal law; or
(4) any municipality, census tract, or defined geographic area that exhibits certain conditions of economic distress warranting designation as a distressed area.
