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
