New Jersey Prevailing Wages laws & HR compliance analysis

New Jersey Prevailing Wages: What you need to know

A prevailing wage is a rate of pay determined by government authorities to be the norm in a particular geographic area for a given class of labor and type of project. Prevailing wage determinations are made using local data and are equivalent to union rates in most areas. Prevailing minimum wages, on the other hand, tend to track statutory minimum wages in a geographic area.
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To give organized labor a fair chance when bidding for government contracts, federal law requires all employers performing federal contracts to pay prevailing wages to their workers. This ensures that nonunion employers cannot gain an unfair bidding advantage by paying wages far below the union rate and passing the savings on to the government in the form of lower bids. Virtually all federal expenditures in the private sector are covered by prevailing wage provisions. The main statutes in this area are the Davis-Bacon Act, governing federal construction contracts, the McNamara-O'Hara Service Contract Act, governing contracts to provide services to the federal government, and the Walsh-Healy Act, governing the manufacturing of goods for the government.
The New Jersey Prevailing Wage Act establishes a prevailing wage level for workers engaged in public works. The Act requires the payment of minimum rates of pay to laborers, craftsmen, and apprentices employed on public works projects, maintenance work and maintenance-related projects, and building services contracts for property or premises owned or leased by the state. Covered workers must receive the appropriate craft prevailing wage rate as determined by the Commissioner of Labor and Workforce Development. Prevailing wage rates are ...

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