New Jersey Raises Prevailing Wage Threshold for Municipal Contracts

Updated Wage Requirements Aim to Ensure Fair Compensation in Public Works

MORRISTOWN, NJ — Starting July 1, the New Jersey Department of Labor and Workaforce Development (NJDOL) has announced an increase in the municipal prevailing wage threshold from $16,263 to $19,375. This adjustment means that any municipal government contract valued at or above this new threshold is now subject to the New Jersey Prevailing Wage Act, ensuring fair pay for workers involved in public projects.

This important change is part of a routine adjustment that occurs every five years, influenced by shifts in the Consumer Price Index (CPI). While the municipal threshold sees this significant increase, other public entities like county agencies, municipal boards of education, and utility authorities will continue to adhere to a fixed prevailing wage threshold of $2,000.

“The established wages under the Prevailing Wage Act ensure equitable compensation for workers, while leveling the playing field among employers. It is important that our municipalities uphold their obligations under the law, which aligns these wages with industry standards to prevent the erosion of skilled labor while promoting economic fairness,” said Robert Asaro-Angelo, the Commissioner of the NJDOL.

Prevailing wage rates, determined by collective bargaining agreements specific to each craft or trade, may vary by county and the nature of the work performed. These rates are intended to reflect fair market pay and are mandatory for all applicable public work contracts. The rates, along with any predetermined increases, are locked in for two years until a new rate determination is required.

Contractors looking to participate in public works projects must comply with these guidelines and are required to register with the NJDOL’s Division of Wage and Hour Compliance as stipulated by the Public Works Contractor Registration Act.

For contractors and municipalities seeking detailed information on prevailing wage rates or compliance requirements, resources are available on the NJDOL website at www.nj.gov/labor/wageandhour/prevailing-rates/public-works/. This site provides access to current and archived rate information, ensuring transparency and accessibility for all stakeholders involved in public contracting.