N.J. Stat. tit. 52, ch. 38

in effect

N.J. Stat. § 52:38-1 Findings, declarations relative to project labor agreements

1. The Legislature finds and declares: a. The United States Supreme Court held in Building & Const. Trades Council of Metropolitan Dist. v. Associated Builders & Contractors of Massachusetts/Rhode Island, Inc., 507 U.S. 218 (1993) that state and local governments, when acting as market participants, are permitted under the National Labor Relations Act (29 U.S.C. s. 151 et seq.) to enforce bid specifications requiring contractors to abide by project labor agreements with labor organizations for construction projects owned by those state and local governments; b. The Supreme Court commented in that case that when a State or local governmental agency utilizes bid specifications containing a project labor agreement for a construction project owned by the agency, the agency "does not regulate the workings of market forces" in violation of National Labor Relations Act pre-emption of such regulation, but is acting as a market participant and "exemplifies" the workings of market forces, and therefore is not prevented from doing so by the National Labor Relations Act; c. New Jersey has a compelling interest in carrying out public works projects at the lowest reasonable cost and the highest degree of quality; d. New Jersey has a compelling interest in having labor disputes in connection with public works projects resolved without the disruptions of strikes, lock-outs, or slowdowns; e. Project labor agreements make possible legally enforceable guarantees that projects will be carried out in an orderly and timely manner, without strikes, lock-outs, or slowdowns; f. Project labor agreements also make it possible to provide for peaceful, orderly, and mutually binding procedures for resolving labor issues; g. The State also has a compelling interest in guaranteeing that public works projects meet the highest standards of safety and quality; h. A highly skilled workforce ensures lower costs for repairs and maintenance over the lifetime of the completed project; i. Project labor agreements make it possible to provide the State with a guarantee that public works projects are completed with highly skilled workers; j. Project labor agreements allow public agencies to more accurately predict the actual cost of projects; k. Project labor agreements make it possible to provide the State with assurances that public works projects are completed with a diverse workforce; l. Project labor agreements facilitate the efficient integration of work schedules among different trades on project sites; m. Project labor agreements also promote harmonious and productive work environments in public works projects; n. New Jersey can best accomplish these goals by encouraging, for suitable public works projects,project labor agreements between public works contractors and subcontractors and labor organizations concerning important issues of employment, including work hours, starting times, overtime rates, and procedures for resolving disputes; and o. Project labor agreements, therefore, give the State an effective means to advance the interests of efficiency, quality, and timeliness of suitable public works projects. L.2002,c.44,s.1.

N.J. Stat. § 52:38-2 Definitions relative to project labor agreements.

2. For the purposes of P.L.2002, c.44 (C.52:38-1 et seq.): "Apprenticeship program" means a registered apprenticeship program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade, and registered by the Office of Apprenticeship of the U.S. Department of Labor and meeting the standards established by the office or registered by a State apprenticeship agency recognized by the office. "Disadvantaged community" means a census block group, as determined in accordance with the most recent United States Census, in which: (1) at least 35 percent of the households are low-income households; (2) at least 40 percent of the residents are minority group members or members of a State-recognized tribal community; or (3) at least 40 percent of the households have limited English proficiency. "Labor organization" means, with respect to a contracted work on a public works project, an organization which represents, for purposes of collective bargaining, employees involved in the performance of public works contracts and eligible to be paid prevailing wages under the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.), and has the present ability to refer, provide, or represent sufficient numbers of qualified employees to perform the contracted work in a manner consistent with the provisions of P.L.2002, c.44 (C.52:38-1 et seq.) and any plan mutually agreed upon by the labor organization and the public entity pursuant to subsection g. of section 5 of P.L.2002, c.44 (C.52:38-5). "Low-income household" means a household that is at or below twice the poverty threshold as that threshold is determined annually by the United States Census Bureau. "Political subdivision" means any county, municipality, school district, or other political subdivision of the State of New Jersey or any instrumentality or agency of the political subdivision. "Project labor agreement" means a form of pre-hire collective bargaining agreement covering terms and conditions of a specific project. "Public entity" means the State, any of its political subdivisions, any authority created by the Legislature, and any instrumentality or agency of the State or of any of its political subdivisions. "Public works project" means any public works project for construction, reconstruction, demolition, or renovation for which: (1) It is required by law that workers be paid the prevailing wage determined by the Commissioner of Labor and Workforce Development pursuant to the provisions of the "New Jersey Prevailing Wage Act," P.L.1963, c.150 (C.34:11-56.25 et seq.); and (2) The public entity estimates that the total cost of the project, exclusive of any land acquisition costs, will equal or exceed $5 million. A municipality, county, school district, or fire district may enter into a project labor agreement for a public works project that does not meet the total project cost established in this definition pursuant to subsection b. of section 3 of P.L.2002, c.44 (C.52:38-3). L.2002, c.44, s.2; amended 2021, c.69, s.1; 2025, c.327, s.1.

N.J. Stat. § 52:38-3 Public entity to include project labor agreements in certain public works projects.

3. a. A public entity may include a project labor agreement in a public works project on a project-by-project basis, if the public entity determines, taking into consideration the size, complexity and cost of the public works project, that, with respect to that project, the project labor agreement will meet the requirements of section 5 of P.L.2002, c.44 (C.52:38-5), including promoting labor stability and advancing the interests of the public entity in cost, efficiency, skilled labor force, quality, safety, and timeliness, and, in the case of a public entity which is a political subdivision, promotes employment of residents of the political subdivision. If the public entity determines that a project labor agreement will meet those requirements with respect to a particular public works project, the public entity shall either: directly negotiate in good faith a project labor agreement with one or more labor organizations; or condition the award of a contract to a construction manager upon a requirement that the construction manager negotiate in good faith a project labor agreement with one or more labor organizations. Upon the request of the public entity, the Commissioner of Labor shall assist in facilitating the negotiation of the project labor agreement. The decision by the public entity to require the inclusion of a project labor agreement requirement shall not be deemed to unduly restrict competition if the public entity finds that the project labor agreement is reasonably related to the satisfactory performance and completion of the public works project, and any bidder for the public works project refusing to agree to abide by the conditions of the project labor agreement or the requirement to negotiate a project labor agreement shall not be regarded as a responsible bidder. Upon the request of the public entity, the Commissioner of Labor shall review the finalized project labor agreement and provide to the public entity, not more than 30 calendar days after the agreement is submitted to the commissioner by the public entity, a written advisory statement regarding whether the project labor agreement conforms with the provisions of P.L.2002, c.44 (C.52:38-1 et seq.). b. Notwithstanding subsection a. of this section, a municipality, county, school district, or fire district may elect whether to include the use of a project labor agreement for a public works project that does not meet the total project cost established in section 2 of P.L.2002, c.44 (C.52:38-2). Nothing in P.L.2025, c.327 shall be construed to prohibit a municipality, county, school district, or fire district from voluntarily entering into a project labor agreement. L.2002, c.44, s.3; amended 2021, c.69, s.2; 2025, c.327, s.2.

N.J. Stat. § 52:38-4 Project labor agreement binding, certain stipulations required.

4. Any project labor agreement negotiated pursuant to this act between the public entity or its representative or a construction manager and one or more labor organizations shall be binding on all contractors and subcontractors working on the public works project and may include provisions that permit contractors and subcontractors working on the public works project to retain a percentage of their current workforce, and provisions that the successful bidder and any subcontractor of the bidder need not be a party to a labor agreement with the labor organizations other than for the public works project covered by the project labor agreement. Each project labor agreement shall stipulate that: a. the provisions of the project labor agreement shall apply to work done at construction sites of the public works project and shall not apply to work done outside of those sites; and b. if a union trust fund covered by the terms and conditions of the project labor agreement has not adopted the building and construction industry exemption authorized by subsection (b) of section 4203 of the Employee Retirement Income Security Act of 1974 (29 U.S.C. s.1383(b)), the signatory employers shall not be obligated to hire employees covered by that fund. L.2002, c.44, s.4; amended 2021, c.69, s.3.

N.J. Stat. § 52:38-5 Requirements for project labor agreement.

5. Each project labor agreement executed pursuant to the provisions of this act shall: a. Advance the interests of the public entity, including the interests in cost, efficiency, quality, timeliness, skilled labor force, and safety; b. Contain guarantees against strikes, lock-outs, or other similar actions; c. Set forth effective, immediate, and mutually binding procedures for resolving jurisdictional and labor disputes arising before the completion of the work; d. Be made binding on all contractors and subcontractors on the public works project through the inclusion of appropriate bid specifications in all relevant bid documents; e. Require that each contractor and subcontractor working on the public works project have an apprenticeship program; f. Fully conform to all statutes, regulations, executive orders and applicable local ordinances regarding the implementation of set-aside goals for women and minority owned businesses, the obligation to comply with which shall be expressly provided in the project labor agreement; g. Include a publicly available plan regarding: (1) the shares of employment and apprenticeship positions in the public works project for minority group members, members of disadvantaged communities, and women which are in full conformance with the requirements of all applicable statutes, regulations, executive orders and local ordinances and is mutually agreed upon by the participating labor organizations and the public entity which will own the facilities which are built, altered or repaired under the public works project, provided that any shares mutually agreed upon pursuant to this subsection shall equal or exceed the requirements of other statutes, regulations, executive orders or local ordinances; and (2) all measures and programs to be undertaken to attain the goals of paragraph (1) of this subsection regarding minority group members, members of disadvantaged communities, and women, which may include measures giving them priority in referral and placement from the hiring halls of signatory unions, programs to provide on-the-job or off-the-job outreach and training, and programs to provide incentives for, or otherwise facilitate, their hiring and employment; h. Require the contract for the public works project to provide whatever resources may be needed to prepare for apprenticeship a number of women, members of disadvantaged communities, and minority group members sufficient to enable compliance with the plan agreed upon pursuant to subsection g. of this section and provide that the use of those resources be administered jointly by the participating labor organizations and the public entity or community-based organizations selected by the public entity; and i. Require the public body to monitor, or arrange to have a State agency monitor, the amount and share of work done on the project by minority group members, members of disadvantaged communities, and women and the progression of minority group members, members of disadvantaged communities, and women into apprentice and journey worker positions, and require the public body to make public, or have the State agency make public, all records of monitoring conducted pursuant to this subsection. L.2002, c.44, s.5; amended 2021, c.69, s.4.

N.J. Stat. § 52:38-6 Annual report to Governor, Legislature

6. The Commissioner of Labor shall make an annual report to the Governor and the Legislature on the effectiveness of all project labor agreements entered into pursuant to this act in advancing the purposes of this act and in meeting the requirements of this act, including any recommendations deemed necessary by the commissioner to better effectuate those purposes. The report shall include a reporting, review and analysis of the information obtained from the monitoring conducted pursuant to subsection i. of section 5 of this act, an analysis of the effectiveness of the project labor agreements in meeting the objectives of section 5 of this act, and a comparison of the performance of public works projects with project labor agreements to the performance of public works projects without project labor agreements. The first report shall be made on or before December 31, 2003, and subsequent reports shall be made on December 31 of each year thereafter. The report issued on December 31, 2006 shall include an analysis of the overall effectiveness of the implementation of the act from the time of its enactment and any recommendations regarding legislation to make changes in the act deemed necessary by the commissioner to better effectuate those purposes. L.2002,c.44,s.6.

N.J. Stat. § 52:38-7 Transfers, retained fund; use; reports.

1. a. Notwithstanding the provisions of any law or regulation to the contrary, upon entering into any public works contract in excess of $1,000,000 which is funded, in whole or in part, by funds of a public body, or any public works contract of any size which is funded, in whole or in part, by funds provided to the public body pursuant to the "American Recovery and Reinvestment Act of 2009," Pub.L.111-5, the public body entering into the contract shall transfer an amount equal to one half of one percent of the portion of the contract amount funded by funds of the public body, or provided to the public body pursuant to the "American Recovery and Reinvestment Act of 2009," Pub.L.111-5, to the Department of Labor and Workforce Development, except that any Statewide authority which enters into the contract and administers a program which meets the requirements of this section may retain all or a portion of the one half of one percent share of the funds under the contract as is necessary for the operation of the program, but shall transfer to the department any portion of the funds not necessary for the program, and except that funds shall not be transferred or retained pursuant to this section if the transfer or retaining of the funds is contrary to any federal requirement and may result in the loss of federal funds. For a project in which federal and State funds are combined, the entire amount may be transferred or retained from the State portion of the funds if doing so is necessary to prevent any loss of federal funds. A political subdivision may elect, but is not required, to transfer to the department or retain, for any one or more of the purposes indicated in subsection b. of this section or for the purpose of providing incentives or otherwise facilitating a local hiring and employment program, an amount equal to one half of one percent of the portion of any public work contract of the political subdivision. b. The department, political subdivision, or authority shall use the transferred or retained funds to provide on-the-job or off-the-job outreach and training programs for minority group members and women in construction trade occupations or other occupations, including engineering and management occupations, utilized in the performance of public works contracts. The programs funded pursuant to this subsection, shall include, but not be limited to, programs preparing minority group members and women for admission into registered apprenticeships with opportunities for long-term employment in construction trades providing economic self-sufficiency for the minority group members and women, with priority given, with respect to the funds from a contract used for apprenticeship programs or apprenticeship-related programs, to trades utilized in that contract, and shall include programs providing supportive services to help facilitate successful completion of any apprenticeship or other training assisted pursuant to this section. The department, political subdivision, or authority shall use funds transferred or retained pursuant to this section to provide grants to implement such programs to consortia which include those community-based organizations, faith-based organizations, labor organizations, employers, contractors and trade organizations, institutions of higher education, and schools and other local public agencies which the department, political subdivision, or authority determines are best able to facilitate entry and success of minority group members and women into training and long-term trade and professional employment in the construction industry, and may use a portion of the funds for initiatives to prepare minority group members and women for registered apprenticeship programs and related post-secondary education, such as grants to consortia provided pursuant to the "Youth Transitions to Work Partnership Act," P.L.1993, c. 268 (C.34:15E-1 et seq.), and for initiatives, such as those of the NJ PLACE program established pursuant to P.L.2009, c.200 (C.34:15D-24 et al.), to facilitate the coordination and articulation of registered apprenticeship programs with degree programs in institutions of higher education, including initiatives to articulate programs in a manner which may assist in providing transitions from trade occupations to professional occupations utilized in the construction industry. The department, political subdivision, or authority shall seek agreements and commitments from grant participants to provide long-term employment to successful applicants and trainees where possible. The department, political subdivision, or authority shall be reimbursed from the transferred or retained funds for any reasonable and necessary costs incurred by the department, political subdivision, or authority in administering those programs. c. The Department of the Treasury, and the Division of Contract Compliance and Equal Employment Opportunities in Public Contracts in that department, shall provide, and make available to the public on the Internet, an annual report, not later than December 31 of 2010 and each year after that year, which shall list all public works contracts subject to this act and report, for each public works contract, the percentage and amount of funds withheld and provided to programs funded pursuant to this section and the numbers and percentages of apprentices and other workers under each contract who are of minority group members and women. The Department of Labor and Workforce Development shall, not later than December 31 of 2010 and each year after that year, provide an annual report, which shall also be made available to the public on the Internet, on all of the programs funded pursuant to this section, which shall include, for each program, data regarding the performance results of minority group members and women participating in the programs, including outcome measures detailing employment placement, increased earnings and employment retention, as those terms are used in the federal Workforce Investment Act of 1998, Pub.L.105-220 (29 U.S.C. s.2801 et seq.), and shall include data regarding enrollment into registered apprentice programs and results regarding their retention in long-term employment. Public bodies and political subdivisions entering into public works contracts subject to the provisions of this section, including Statewide authorities, and the Department of the Treasury shall provide such information to the Department of Labor and Workforce Development and the Department of the Treasury as the departments deem necessary for the purposes of this section. d. For the purposes of this section: "political subdivision" means any county, municipality, school district or other political subdivision of the State of New Jersey or any instrumentality or agency of the political subdivision; "public body" means the State of New Jersey, any authority created by the Legislature of the State of New Jersey and any instrumentality or agency, but not any political subdivision, of the State of New Jersey; "public works contract" means public works contract as defined in section 1 of P.L.1975, c.127 (C.10:5-31); "registered apprenticeship" means apprenticeship in a program providing to each trainee combined classroom and on-the-job training under the direct and close supervision of a highly skilled worker in an occupation recognized as an apprenticeable trade, and registered by the Office of Apprenticeship of the United States Department of Labor and meeting the standards established by that office; and "Statewide authority" means any authority created by the Legislature which is authorized by law to enter into contracts for construction at locations throughout the State. L.2009, c.313, s.1; amended 2019, c.76.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.njleg.state.nj.us/legislative-activity/statutesFetched: 10/17/2026