(TRENTON)—Governor James E. McGreevey today signed into law Senate Bill 576, will drastically increase the penalties for violation of New Jersey’s Prevailing Wage Act.  The Governor was joined by Labor Commissioner Al Kroll, Senate President Richard J. Codey, Assembly members Gary Guear, Arline Friscia and George Geist, as well as NJ AFL-CIO President Charlie Wowkanech.

 

“With this new law, we are sending a clear message to employers—if you violate the Prevailing Wage Act, you will pay, and you will pay a hefty price,” said McGreevey. “I would like to thank Senate President Codey and Senator Matheussen, as well as Assemblymen Guear and Geist, for their leadership in getting this legislation passed.”

 

"An honest day's work deserves an honest day's pay," said Senator Codey, D-Essex.  "Today we move one step forward towards securing such pay for all men and women who work on public contracts in the state of New Jersey."

 

Currently, New Jersey’s Prevailing Wage Act ensures that workers who are employed by government contracts receive a fair wage.  The Act also sets pay at a level that is equivalent to union wages for each profession within the contracting field.  However, the penalty for violation of the Prevailing Wage Act has not been updated for almost 20 years. 

 

The new law increases the penalties tenfold that the Commissioner of Labor is authorized to collect when employers violate the prevailing wage law. For the first violation, administrative penalties would increase from $250 to $2,500.  For subsequent violations, administrative penalties would increase from $500 to $5,000. 

 

"Penalties for breaking the prevailing wage law should be significant and not just a slap on the wrist," said Guear. "Too often, unscrupulous contractors opt to pay the penalties because they are cheaper than the cost of increased wages."

 

“It is of the utmost importance to protect the rights of employees and this legislation will provide additional support to make certain that they receive the earnings they deserve,” said Matheussen.

 

“The prevailing wage act is an important cornerstone to public works projects throughout New Jersey,” said Geist. “It provides a living wage for workers, levels the playing field among contractors, and reinforces the public’s expectations that a quality project will be constructed for public use.”

           

Senate Bill 576, which passed the Senate on March 4, 2002, was sponsored by Senators Richard J. Codey (D-Essex) and John Matheussen (R-Camden/ Gloucester).  S-576 was substituted for A-1344 in the Assembly, where it was sponsored by Assemblymen Gary Guear (D-Mercer/ Middlesex) and George Geist (R-Camden/ Gloucester).