ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 989

STATE OF NEW JERSEY

DATED:  MARCH 17, 2021

      The Assembly Appropriations Committee reports favorably Senate Bill No. 989 SCS.

      The bill requires certain airport and train station workers to be paid certain wage rates and benefits and makes those requirements subject to P.L.2005, c.379. The bill requires that the wage rates are at least the wages set under the federal service prevailing wage law, which is the same standard as the State service prevailing wage law.  However, the State law pertains only to building services, defined as janitorial and security services, while this bill covers all jobs under the terminal contractors, except certain specified managerial jobs.

      Under the bill, “covered airport or related location worker" means

      (1)  any person employed to perform work at a covered airport or related location, provided at least half of the employee's time during any workweek is performed at a covered airport and related location; or

      (2)  any person who performs work related to the preparation or delivery of food for consumption on airplanes departing from a covered airport or related location. The term does not include persons employed in an executive, administrative, or professional capacity or any person employed by a public agency.

      The bill provides that the prevailing wage rates will be a minimum standard rate of compensation for these workers, as follows:

      On and after September 1, 2021 and every year thereafter, in no event will the prevailing wage rate applicable to a covered airport or related location worker be less than the following:

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

      (b)  an amount of wages or supplements equal to the rate for health and welfare for all occupations, designated by the commissioner based on the determinations made by the federal department of labor pursuant to the McNamara-O'Hara Service Contract Act of 1965 (41 U.S.C. 6701 et seq.) for the geographic region in which the covered airport location is located and in effect on the date of the designation by the commissioner; and

      (c)  paid leave equal to the paid leave requirements designated by the Commissioner the immediately preceding August 1, based on the determinations made by the General Services Administration pursuant to the federal "Service Contract Act of 1965" (41 U.S.C. s.351 et seq.).

      The bill defines “covered airport or related location” as Newark Liberty International Airport and Newark Liberty International Airport Train Station.

      As reported by the committee, Senate Bill No. 989 (SCS) is identical to Assembly Bill No. 2487 (ACS), which also was reported by the committee on this date.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.