S377

An Act concerning certain transportation center workers and supplementing P.L.2005, c379 (C.34:11-56.58 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. The Legislature finds and declares that:

a. Every weekday, over 100,000 travelers commute through Newark Penn Station and Hoboken Terminal, and in 2018, over 30 million passengers traveled through Newark Liberty International Airport, making these transportation centers some of the busiest hubs in the country.

b. The workers in these centers often cannot afford employer-provided healthcare plans, and unaffordable healthcare expenses is one of the sources of the high rates of turnover for the workers in these centers.

c. Improved retention rates of workers in these transportation centers is an investment in service and safety for all who pass through the centers, and compensating these workers so that they can afford healthcare and receive a living wage is a way to increase retention.

2. As used in this act:

“Applicable standard rate” shall mean the combined compensation rate of:

(1) the standard wage rate;

(2) the standard benefits supplement rate; and

(3) the standard paid leave.

“Covered transportation center” means Newark Liberty International Airport, Newark Liberty International Train Station, Newark Penn Station, or the Hoboken Terminal.

“Covered transportation center worker” means any person employed to perform work at a covered transportation center, provided at least one-half of the person’s time during any workweek is performed at a covered transportation center; however, work performed for a mercantile establishment or a restaurant shall not be included within the meaning of covered transportation center worker. Covered transportation center worker shall not include any person employed in a bona fide executive, administrative, or professional capacity.

“Mercantile establishment” means any place where goods, wares, or merchandise are offered for sale to the public.

“Restaurant” means any place where meals or refreshments, both food and drink, are served to the public.

“Standard benefits supplement rate” means an hourly supplement, excluding paid leave, furnished by an employer or contractor to an employee in one of the following ways:

(1) in the form of health and other benefits in an amount equivalent to the cost to the contractor or employer in cash payment;

(2) by providing a portion of the required hourly supplement in the form of health and other benefits and the remaining value of the supplement in cash payment; or

(3) by providing the entire supplement in cash payment.

Effective September 1, 2020 and each September 1 of each year thereafter, the required standard benefits supplement rate shall be an amount equal to the supplemental benefits rate designated by the commissioner on August 1 immediately preceding September 1 of each year, based on the determination made by the United States Department of Labor pursuant to the federal "McNamara-O’Hara Service Contract Act" (41 U.S.C. s.6701 et seq.), for the classification of “Guard I” for the county in which the covered transportation center is located.

“Standard paid leave” means effective September 1, 2020 and each September 1 thereafter, paid leave equal to the paid leave requirements designated by the commissioner on the August 1 immediately preceding September 1 of each year, based on the determination made by the United States Department of Labor pursuant to the federal "McNamara-O’Hara Service Contract Act" (41 U.S.C. s.6701 et seq.), for the classification of “Guard I” for the county in which the covered transportation center is located.

“Standard wage rate” means:

(1) effective September 1, 2020, the greater of:

(a) $2.00 more than any minimum wage rate, that would otherwise be applicable to covered transportation center workers, established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey;

(2) effective September 1, 2021, the greater of:

(a) $2.50 more than any minimum wage rate, that would otherwise be applicable to covered transportation center workers, established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey;

(3) effective September 1, 2022, the greater of:

(a) $3.00 more than any minimum wage rate, that would otherwise be applicable to covered transportation center workers, established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey;

(4) effective September 1, 2023, the greater of:

(a) $3.50 more than any minimum wage rate, that would otherwise be applicable to covered transportation center workers, established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey;

(5) effective September 1, 2024, the greater of:

(a) $4.00 more than any minimum wage rate, that would otherwise be applicable to covered transportation center workers, established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey; and

(6) effective September 1, 2025, and each September 1 thereafter, the greater of:

(b) any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey; or

(c) an amount equal to the wage rate designated by the commissioner on August 1 immediately preceding September 1 of each year, based on the determination made by the United States Department of Labor pursuant to the federal “McNamara-O’Hara Service Contract Act" (41 U.S.C. s.351 et seq.), for the classification of “Guard I” for the county in which the covered transportation center is located.

3. On August 1, 2020 and each subsequent August 1 thereafter, the commissioner shall designate the supplemental benefits rate and paid leave requirements required based on the determination made by the United States Department of Labor pursuant to the federal "McNamara-O’Hara Service Contract Act " (41 U.S.C. s.6701 et seq.), for the classification of “Guard I” for the county in which the covered transportation center is located. The commissioner shall publicly post those supplemental benefits rates and paid leave requirements.

4. Any employer of a covered transportation center worker shall compensate a covered transportation center worker at a rate that is no less than the applicable standard rate. Nothing in this act shall alter or limit an employer’s obligation to pay any otherwise applicable prevailing wage under the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.) or the prevailing wage levels for the employees of contractors and subcontractors furnishing building services established under P.L.2005, c.379 (C.34:11-56.58 et seq.).

5. The commissioner, in consultation with the Department of Transportation and the Attorney General, shall promulgate rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), within six months of the date of enactment of this act, to implement the provisions of this act.

6. This act shall take effect on the first day of the third month next following enactment.

STATEMENT

This bill requires certain transportation center workers to be paid certain wage rates and supplemental benefits. Specifically, the bill requires certain transportation center workers at the Newark Liberty International Airport, the Newark Liberty International Airport Train Station, Newark Penn Terminal, and Hoboken Terminal to be paid certain wage rates that rise annually over the course of six years, from September 1, 2020 to September 1, 2025.

Under the bill, covered transportation center worker means any person employed to perform work at a covered transportation center, provided at least one-half of the person’s time during any workweek is performed at a covered transportation center. However, the bill excludes work performed for a mercantile establishment or a restaurant.

In 2020, the wage rate will be the greater of: two dollars more than any minimum wage rate established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); or any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey. In 2025, the wage rate will be the greater of: four dollars more than any minimum wage rate established by the "New Jersey State Wage and Hour Law," P.L.1966, c.113 (C.34:11-56a et seq.); any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey; or an amount equal to the wage rate designated by the Commissioner of Labor and Workforce Development on the August 1 immediately preceding September 1 of each year, based on the determination made by the United States Department of Labor pursuant to the federal "McNamara-O’Hara Service Contract Act."

Additionally, the bill mandates a standard benefits supplement rate and paid leave requirements for covered transportation center workers.