[First Reprint]

SENATE, No. 989

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JANUARY 30, 2020

 


 

Sponsored by:

Senator  LORETTA WEINBERG

District 37 (Bergen)

Senator  LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

Senator  STEPHEN M. SWEENEY

District 3 (Cumberland, Gloucester and Salem)

 

Co-Sponsored by:

Senators Ruiz, Cruz-Perez, Sacco, Singleton, Diegnan, Stack, Cunningham, Codey, Lagana, Vitale, Gopal, Pou, Scutari, Cryan and Sarlo

 

 

 

 

SYNOPSIS

     “Healthy Terminals Act”; requires certain airport and train station workers to be paid certain wage rates and benefits.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Labor Committee on August 10, 2020, with amendments.

 


An Act concerning wages and benefits of certain airport and train station workers and supplementing P.L.2005, c.379 (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.     In 2018, over 30 million passengers traveled through Newark Liberty International Airport, making this airport and the Newark Liberty International Airport Train Station one of the busiest transit hubs in the country.

     b.    The workers at the airport and train station 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 the airport and train station.

     c.     Improved retention rates of workers in the airport and train station is an investment in service and safety for all who pass through the airport and train station 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:

     a.     "Applicable standard rate" shall mean a combination of:

     (1)   the standard wage rate;

     (2)   the standard benefits supplement rate; and

     (3)   the standard paid leave.

     b.    “Covered airport and related location” means Newark Liberty International Airport and Newark Liberty International Airport Train Station.

     c.     “Covered airport and related location worker" means any person employed to perform work at a covered airport and related location, provided at least half of the employee's time during any workweek is performed at a covered airport and related location. “Covered airport and related location worker” shall not include persons employed in an executive, administrative, or professional capacity as defined in subparagraph 1 of paragraph (a) of section 13 of the Fair Labor Standards Act of 1938 (29 U.S.C. s.213 et seq.). "Covered airport and related location worker" shall not include any person employed by a public agency.

     d.   “Public agency” means:

     (1)   any department or agency of the State of New Jersey and any political subdivision thereof;

     (2)   the New Jersey Transit Corporation; and

     (3)   the Port Authority of New York and New Jersey.

     e.     “Standard benefits supplement rate” means an hourly supplement furnished by a contractor to an employee in one of the following ways:

     (1)   in the form of health and other benefits (not including paid leave) that cost the employer the entire required hourly supplemental amount;

     (2)   by providing a portion of the required hourly supplement in the form of health and other benefits (not including paid leave) and the balance in cash; or

     (3)   by providing the entire supplement in cash. 

     Effective September 1, 1[2020] 20211 and each September 1 thereafter, the required hourly supplement shall be an amount equal to the supplemental benefits rate designated by the Commissioner the immediately preceding August 1, 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 airport and related location is located.

     f.     “Standard paid leave” means effective September 1, 1[2020] 20211 and each September 1 thereafter, paid leave equal to the paid leave requirements designated by the Commissioner the immediately preceding August 1, 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 airport and related location is located.

     g.    "Standard wage rate" means:

     (1)   effective September 1, 1[2020] 20211, the greater of:

     (a)   $2.00 more than any minimum wage rate, that would be otherwise applicable to covered airport and related location 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, 1[2021] 20221 the greater of:

     (a)   $2.50 more than any minimum wage rate, that would be otherwise applicable to Covered Airport and Related Location 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, 1[2022] 20231the greater of:

     (a)   $3.00 more than any minimum wage rate, that would be otherwise applicable to Covered Airport and Related Location 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, 1[2023] 20241 the greater of:

     (a)   $3.50 more than any minimum wage rate, that would be otherwise applicable to covered airport and related location 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, 1[2024] 20251 the greater of:

     (a)   $4.00 more than any minimum wage rate, that would be otherwise applicable to covered airport and related location 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;

     (6)   effective September 1, 1[2025] 20261, and each September 1 thereafter, the greater of:

     (a)   $4.00 more than any minimum wage rate, that would be otherwise applicable to covered airport and related location 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; or

     (c)   an amount equal to the wage rate designated by the commissioner the immediately preceding August 1 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 airport and related location is located.

 

     3.    On August 1, 1[2020] 20211 and each August 1 thereafter, the commissioner shall designate the supplemental benefits rate and  paid leave requirements required under 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 airport and related location is located. The commissioner shall publicly post the designated supplemental benefits rates and paid leave requirements.

     4.    Any employer of a covered airport and related location worker shall ensure that such covered airport and related location worker is compensated at a rate that is no less than the applicable standard rate.  Nothing in this article shall alter or limit any 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 be known and may be cited as the “Healthy Terminals Act.”

 

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