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NJ Labor Department announces the municipal wage threshold will increase to $19,375 on July 1

NJ Labor Department announces the municipal wage threshold will increase to $19,375 on July 1

TRENTON – Effective July 1, the applicable municipal wage threshold will increase from $16,263 to $19,375, meaning contracts awarded directly by municipal governing bodies must be valued at this amount or more to be subject to the New Jersey Prevailing Wage Act. Municipal assignments below the threshold are not covered by the law.

The municipally applicable wage thresholds are adjusted every five years based on the consumer price index (CPI). All other public entities, including at the provincial level, municipal boards of education and utilities, remain below the applicable wage threshold of $2,000, which does not adjust.

“The set wages under the Prevailing Wage Act ensure fair pay for employees while leveling the playing field among employers,” said Robert Asaro-Angelo, Commissioner of the New Jersey Department of Labor and Workforce Development (NJDOL). “It is important that our municipalities meet their obligations under the law, which aligns these wages with industry standards to prevent the erosion of skilled labor while promoting economic justice.”

The prevailing wage rates are based on the collective labor agreements established for a particular trade or profession where public work is performed. In New Jersey, these rates vary by county and by type of work. Current and archived prevailing wage rates are available on the NJDOL website.

The applicable rates are the wages and benefits in effect on the date the contract is awarded to a general contractor. All stated predetermined rate increases must be paid beginning on the dates indicated. All rates are valid for two years, after which a new rate provision must be chosen from the expiry date.

Contractors interested in bidding for or participating in public work covered by the Prevailing Wage Act must register with NJDOL’s Division of Wage and Hour Compliance as required by the Public Works Contractor Registration Act.

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