ASSEMBLY, No. 2012

STATE OF NEW JERSEY

INTRODUCED MAY 13, 1996

By Assemblywoman GILL, Assemblyman IMPREVEDUTO and Assemblywoman Buono

An Act concerning wages paid under public contracts and supplementing chapter 32 of Title 52 of the Revised Statutes.

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

    1. A public body shall not enter into a public contract under which goods or services are furnished to the public body, unless that contract includes:

    a. A provision that every employee who produces the goods or services furnished to the public body shall be paid wages at a rate not less than the minimum wage rate required pursuant to the provisions of section 5 of P.L.1966, c.113 (C.34:11-56a4);

    b. A provision that the contractor shall provide wage records requested by the Commissioner of Labor; and

    c. A provision that the contractor shall accept the penalties imposed by section 2 of this act if the required wages are not paid.

    2. If the Commissioner of Labor determines, after investigation, that any wages for the work done to furnish goods or services under a public contract have been paid at a rate less than the rate required by the contract pursuant to section 1 of this act, the commissioner shall notify the contractor of the determination. If the contractor disagrees with the determination, the contractor may, not more than 10 after the notification is given, apply to the commissioner for a hearing which shall be afforded and a final determination rendered within 10 days of the request for a hearing. If no hearing is requested, the determination shall become a final determination upon the expiration of the 10-day period following the notification. Upon a final determination by the commissioner that wages have been paid at a rate less than the rate required by the contract:

    a. The contract shall be terminated immediately, unless the State Treasurer determines that an immediate termination would have a significant adverse impact on the public body, in which case the contract shall be terminated at the earliest time that the State Treasurer determines that the contract can be terminated without a significant adverse impact on the public body;

    b. No subsequent contract with a public body shall be awarded to the contractor, or to any business in which the contractor has an interest, until five years have elapsed from the date of the final determination; and

    c. The State Treasurer shall place the name of the contractor, and any business in which the contractor has an interest, on a list which shall be made available to the public and provided, upon request, by the State Treasurer to any public body upon request.

    If, upon a hearing, the commissioner makes a final determination that wages have been paid at a rate less than the rate required by the contract and the contractor disagrees with that final determination, the contractor may seek injunctive relief against the final determination in Superior Court.

    3. No public body shall award a public contract to a contractor to furnish goods or services to the public body without first ascertaining that the contractor is not on the most current list made available by the State Treasurer pursuant to subsection c. of section 2 of this act.

    4. For the purposes of this act, "public body" means the State of New Jersey, any of its political subdivisions, any authority created by the Legislature of the State of New Jersey and any instrumentality or agency of the State of New Jersey or any of its political subdivisions.

    5. The Commissioner of Labor, in consultation with the State Treasurer, shall adopt rules and regulations in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C52:14B-1 et seq.) as necessary to implement and enforce the provisions of this act.

    6. This act shall take effect immediately.

STATEMENT

    This bill requires that every public contract to furnish goods or services to the State or other public body include a provision that all employees producing the furnished goods or services be paid not less than the State minimum wage established pursuant to section 5 of P.L.1966, c.113 (C.34:11-56a4), which is currently $5.05 per hour.

    If the required wages are not paid, the bill requires that the contract be terminated immediately or as soon as possible without significant adverse impact on the public body, and prohibits the awarding of subsequent public contracts for five years to the contractor and any business in which the contractor has an interest.

    The bill is designed to protect those contractors who meet or exceed the minimum standard for wages from unfair competition by contractors who do not, including contractors who employ workers outside of the State at substandard wages. The bill also enhances the State's ability to implement the public policy adopted by the State pursuant to section 1 of P.L.1966, c.113 (C.34:11-56a) to safeguard workers' "health, efficiency, and general well-being and to protect them as well as their employers from the effects of serious and unfair competition resulting from wage levels detrimental to their health, efficiency and well-being."

Requires payment of minimum wage under public contracts.