After two years, contractors can register for two years for $500. There is a $300 annual fee for registration. In order to work on a prevailing wage project in New Jersey, all contractors must register with the Division of Wage and Hour Compliance. In addition, workers that provide building services to state-owned or leased buildings are subject to prevailing wage laws. Who is subject to prevailing wage rates?Īll contractors and subcontractors whose workers provide hands-on labor for a public works project in New Jersey are subject to prevailing wage laws. Other financing options for contractors may allow them to access funds to cover other project costs, like mobilization and payroll expenses, when they take on bigger projects. This allows you to save your own cash for payroll while you wait for your invoices to get paid. One solution: Material financing allows contractors to use another company’s money to purchase building materials, with repayment terms that stretch up to 120 days. If you don’t have sufficient cash in the bank, you need to find ways to delay paying for some project costs until you get paid by your customer. Public projects are notorious for long payment delays. You need to keep a close eye on your project cash flow to ensure you have enough on hand to pay your workers on time, and still be able to pay other bills.īuilding prevailing wages into your estimates and bids isn’t enough. Higher labor costs can put a real crunch on your cash flow during a prevailing wage job. While some project costs can be deferred until you receive payment from your customer, payroll can’t wait. If you’re new to prevailing wage projects, the labor rates may be much higher than you’re used to paying on normal projects. See it in Action How to deal with higher labor costs Wage determinations set the hourly wage, value of fringe benefits, and total hourly compensation for a variety of worker classifications.įor example, here are some wage rates for journeymen in Morris County (accessed July 12, 2023): Determinations are based on the date the contract is awarded for a project and must be posted on-site where they are visible to all workers. Wage determinations for construction projects are issued by the New Jersey Department of Labor and Workforce Development, Division of Wage and Hour Compliance, Public Contracts Section. “Building services” are defined as regular building maintenance and cleaning services. New Jersey also has a separate set of prevailing wage laws for contractors providing “building services” to state-owned or leased buildings. The state of New Jersey has prevailing wage laws in an effort to “safeguard” the efficiency and general well-being of laborers and workers on public works projects and “to protect them as well as their employers from the effects of serious and unfair competition resulting from wage levels detrimental to efficiency and well-being.” N.J. The contract is required to have in it a provision establishing that workers on a given job will not be paid less than the prevailing wage rate. In New Jersey, the law requires that for every public construction project that’s required to pay a prevailing wage, the prevailing amount must be included in the project contract. They apply for projects in buildings owned or leased by state or local governments. New Jersey prevailing wage laws apply to municipal government projects costing over $16,263, and projects for all other public entities over $2,000. What jobs must pay prevailing wage in New Jersey? How to submit certified payroll reports.Who is subject to prevailing wage rates?.What jobs must pay prevailing wage in New Jersey?.
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