The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) requires that workers on public works projects be paid the prevailing wage rate for their trade and locality. What most GCs underestimate is the degree to which compliance — and liability for non-compliance — rests on their shoulders.

The GC's Obligation Goes Beyond Their Own Workers

Under New Jersey law, the GC has an affirmative duty to ensure that all subcontractors — at every tier — are paying prevailing wages. If a sub pays below the prevailing rate, the GC can be held jointly liable for the underpayment, plus penalties.

Certified Payroll Requirements

  • Submit certified payroll records to the contracting public body weekly
  • Maintain those records for at least two years after project completion
  • Allow inspection of records by the NJ Department of Labor upon request
  • Classify workers correctly by trade

Penalties for Non-Compliance

  • Civil penalties up to $500 per violation per day
  • Debarment from public works contracts for up to three years for repeat violations
  • Back-wage liability that can fall on the GC
  • Criminal penalties for willful violations