SENATE LABOR COMMITTEE

STATEMENT TO

SENATE, No. 989

STATE OF NEW JERSEY

DATED:  AUGUST 10, 2020

      The Senate Labor Committee reports favorably, with committee amendments, Senate Bill, No. 989.

      As amended by the committee, this bill requires certain airport and train station workers to be paid certain wage rates and supplemental benefits.  Specifically, the bill requires certain workers at the Newark Liberty International Airport and Newark Liberty International Airport Train Station to be paid certain wage rates that rise annually over the course of six years, from September 1, 2021 to September 1, 2026.

      Under the bill, covered airport and related location worker means any person employed to perform work at Newark Liberty International Airport or Newark Liberty International Airport Train Station, provided at least one-half of the employee's time during any workweek is performed at Newark Liberty International Airport or Newark Liberty International Airport Train Station. The term will not include persons employed in an executive, administrative, or professional capacity, or any person employed by a public agency.

      In 2021, the wage rate will be the greater of: $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 any otherwise applicable minimum wage rate established through a policy of the Port Authority of New York and New Jersey.

      In 2026, and each September 1 thereafter, the wage rate will be the greater of: $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 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 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.

      Additionally, the bill mandates a standard benefits supplement rate and paid leave requirements for covered airport and train station workers.

COMMITTEE AMENDMENTS:

      The committee amended the bill to delay the dates that the wage increases go into effect by one year, starting with changing the year of the first increase from 2020 to 2021, and concluding with changing the last year of increase from 2025 to 2026.