N.J. Stat. tit. 34, ch. 11A

in effect

N.J. Stat. § 34:11A-1 Short title

This act shall be known and may be cited as the "Construction Workers' Fringe Benefit Security Act." L. 1987, c. 150, s. 1.

N.J. Stat. § 34:11A-2 Definitions

As used in this act: a. "Construction employer" means a person in the business of building, constructing, altering or repairing any building, road, bridge or structure in this State; b. "Construction fund" means all moneys in the custody of the owner of a project, which moneys are designated for the construction, alteration or repair of any private or public project; c. "Fringe benefits" means any benefits agreed to be paid by a construction employer to a fringe benefit fund; d. "Fringe benefit fund" means any fund established pursuant to the terms of a collective bargaining agreement entered into between a construction employer and a representative labor organization, or pursuant to the terms of a fringe benefit trust indenture entered into between the trustees of a fund and the construction employer, for the collection, investment and payment of fringe benefits; e. "Prime contractor" means a construction employer who has a direct contract with the owner of a public or private project; f. "Private project" means the construction, repair or alteration of any building, road, bridge or structure or any other improvements to real property for any person other than this State, any agency, commission or department thereof, or any county, municipality or school district or any agency or instrumentality thereof; g. "Public project" means the construction, alteration or repair of any building, road, bridge or structure or any other improvements to real property for this State, any agency, commission or department thereof, or any county, municipality or school district or any agency or instrumentality thereof; h. "Public project owner" means the head of the public agency with jurisdiction over the public project; i. "Subcontractor" means a construction employer who has a contract with a prime contractor or with the subcontractor of the prime contractor; and j. "Worker" means any person engaged in a skilled or unskilled construction trade or craft in this State. L. 1987, c. 150, s. 2.

N.J. Stat. § 34:11A-3 Applicable fringe benefit funds

The provisions of this act shall apply only to fringe benefit funds which are a. located within and established for the benefit of workers in this State or b. located outside of the State but which cover workers employed by any construction employer in the construction, repair or alteration of any private project or public project within this State. L. 1987, c. 150, s. 3.

N.J. Stat. § 34:11A-4 Relief for delinquent payment

a. (1) If a subcontractor is at least four weeks delinquent in the payment of fringe benefits, as certified by the trustees of the specific fringe benefit fund or by their designated representative, the fringe benefit fund shall be entitled to the relief provided pursuant to section 5 of this act; provided that the fringe benefit fund shall have given written notice within 45 days of the date of the existence of a delinquency by certified mail, return receipt requested, to the prime contractor and the subcontractor advising them of the delinquency. (2) If the delinquency is not rectified within 30 days after receipt of notice by the prime contractor, the fringe benefit fund shall give written notice, by certified mail, return receipt requested, to the subcontractor, prime contractor and private or public project owner of the fringe benefit funds claimed for payment of fringe benefits from the construction fund. b. If a prime contractor is at least four weeks delinquent in the payment of fringe benefits, as certified by the trustees of the specific fringe benefit fund or by their designated representative, the fringe benefit fund shall be entitled to the relief provided pursuant to section 5 of this act; provided that the fringe benefit fund shall have given written notice within 45 days of the date of the existence of a delinquency by certified mail, return receipt requested, to the prime contractor and the private or public project owner, advising them of the delinquency. c. The written notices required under this section shall not be filed with any county clerk or in any public registry. If the notices cannot be delivered by certified mail, they may be sent by personal service. d. The remedies provided herein are effective as against the construction fund. No rights against the real property upon which the project is constructed, altered or repaired shall be created by this act. L. 1987, c. 150, s. 4.

N.J. Stat. § 34:11A-5 Withholding of fringe benefit funds

a. Upon receipt of the notice required by paragraph (2) of subsection a. of section 4 of this act or subsection b. of section 4 of this act, a private or public project owner shall withhold from the sums otherwise due the prime contractor, a sum equal to the amount claimed due by the fringe benefit fund and any further sums subsequently demanded by the fringe benefit fund arising out of work performed at the private or public project, which sums shall be segregated from the construction fund and held in trust by the private or public project owner or deposited with the clerk of the Superior Court and paid to the fringe benefit fund claiming the delinquency. b. The amount withheld or deposited by the private or public project owner shall not exceed the amount due and owing from that owner to the prime contractor at the time notice is received by the owner. c. The extent to which notice for a subcontractor delinquency shall create liability upon the owner shall be limited to the amount due and owing, at the time notice is received, by the owner to the prime contractor, or by the prime contractor to the delinquent subcontractor or by the subcontractor who is in privity with the delinquent subcontractor, whichever is less. d. Payment by the private or public project owner to the fringe benefit fund shall be made within 45 days of such demand, unless and only to the extent that the subcontractor or prime contractor against whom such delinquency claim has been asserted notifies the owner and the fringe benefit fund in writing by certified mail, return receipt requested, prior to the expiration of the 45 day period that it contests the claim of the fringe benefit fund. Whenever a notice of contest has been sent by the claimed delinquent construction employer, the private or public project owner shall hold a sum in the amount claimed due by the fringe benefit fund as trustee and payment therefrom shall be made upon the entry of a final judgment of a court of competent jurisdiction or upon receipt of the consent of all of the parties. L. 1987, c. 150, s. 5.

N.J. Stat. § 34:11A-6 Release from obligation

Any private or public project owner, prime contractor or subcontractor who makes a proper payment to a fringe benefit fund or deposits the payment with the clerk of the Superior Court, in accordance with section 5 of this act, shall be released of any obligation to any party in privity with that private or public project owner, prime contractor or subcontractor, to the extent of the payment or deposit made. L. 1987, c. 150, s. 6.

N.J. Stat. § 34:11A-7 Actions commenced by fringe benefit fund

With regard to actions commenced by a fringe benefit fund in the courts of this State, the private or public project owner shall not be named a party in such action if the total delinquent sum demanded by the fringe benefit fund is deposited with the clerk of the Superior Court prior to the commencement of an action. L. 1987, c. 150, s. 7.

N.J. Stat. § 34:11A-8 Entitlement to remedies

Fringe benefit funds entitled to the remedies against a private or public project owner provided pursuant to sections 4 and 5 of this act are entitled only to those fringe benefits earned by workers on the particular project constructed for the owner. L. 1987, c. 150, s. 8.

N.J. Stat. § 34:11A-9 Insolvency

If a construction employer files for insolvency or makes an assignment of rights pursuant to the laws of this State, any delinquent fringe benefits shall be entitled to the same priority as delinquent wages in such proceedings. L. 1987, c. 150, s. 9.

N.J. Stat. § 34:11A-10 Responsibility for damages

If a notice filed pursuant to section 4 of this act is willfully or knowingly in excess of the amounts due the fringe benefit fund, the fund shall be responsible for any damages incurred. L. 1987, c. 150, s. 10.

N.J. Stat. § 34:11A-11 Responsibility for costs, fees

All costs and fees arising out of the procedures established in section 5 of this act shall be the responsibility of the delinquent party. Where no delinquency is determined, the costs, fees, and damages arising out of the procedures established in section 5 of this act shall be the responsibility of the fringe benefit fund. L. 1987, c. 150, s. 11.

N.J. Stat. § 34:11A-12 Additional remedies

The remedies provided pursuant to the act shall be in addition and not in lieu of any other remedies provided under the laws of this State. L. 1987, c. 150, s. 12.

N.J. Stat. § 34:11A-13 Notification to employees on coverage for treatment of breast cancer

9. An employer in this State who provides coverage to his employees or their dependents for treatment of breast cancer shall annually and upon request of an employee at other times during the year, notify his employees whether the employees' coverage for treatment of breast cancer is subject to the requirements of P.L.1997, c.149 (C.17:48-6q et al.) concerning the minimum time a patient shall be permitted to remain at an inpatient care facility following a mastectomy. L.1997,c.149,s.9.

N.J. Stat. § 34:11A-14 Notification to employees by employers with self-funded health plans

18. An employer who provides a comprehensive self-funded health benefits plan to his employees or their dependents in this State shall annually, and upon request of an employee at other times during the year, notify his employees that they are covered by a self-insured plan that is not subject to regulation by the State of New Jersey, and specify which mandated health insurance benefits, established by statute, are not covered by the self-insured plan. The Commissioner of Health and Senior Services shall notify the Commissioner of Labor of any health insurance mandates enacted into law, and the Commissioner of Labor shall notify employers in a timely manner of the health insurance mandates subject to the provisions of this section. L.1997,c.192,s.18.

N.J. Stat. § 34:11A-15 Notification to employees of coverage for biologically-based mental illness.

9. An employer in this State who provides health benefits coverage to his employees or their dependents for treatment of biologically-based mental illness shall annually, and upon request of an employee at other times during the year, notify his employees whether the employees' coverage for treatment of biologically-based mental illness is subject to the requirements of this act. L.1999,c.106,s.9.

N.J. Stat. § 34:11A-16 Findings, declarations relative to notification with regard to health benefits plans.

1. The Legislature finds and declares that: a. Many employers in this State offer health benefits coverage to their employees under a health benefits plan as an incentive to attract and retain qualified employees. b. Health benefits coverage is very important to employees and their families and the availability of such coverage through an employer can be the determining factor as to whether an individual accepts employment with a particular employer. c. According to data tabulated by the Urban Institute based on the 1999 National Survey of America's Families, approximately 5.5 million New Jersey residents, which includes employees and their dependents, were covered by an employer-sponsored health benefits plan in 1999. d. In certain instances, an employer may make a business decision not to continue an employee health benefits plan, due to rising health care costs and other economic factors, and may not always notify the employees beforehand of its decision. e. It is a disservice to the working people of this State not to require that an employer provide prior notification to its employees when the employee health benefits plan will be terminated, for whatever reason. L.2003,c.27,s.1.

N.J. Stat. § 34:11A-17 Notice by employer of termination, change of benefits.

2. An employer that provides a health benefits plan as defined in section 2 of P.L.1997, c.192 (C.26:2S-2) to its employees in this State shall provide, in writing, 30 days' prior notice to those employees before the health benefits plan is terminated; except that, in the case of an employer that changes a health benefits plan, the employer shall immediately notify its employees in writing of the change upon receipt by the employer of notification from the health insurer that its employees will be covered by the new plan. L.2003,c.27,s.2.

N.J. Stat. § 34:11A-18 Violations, penalties.

3. a. The Commissioner of Labor shall enforce and administer the provisions of sections 1 through 4 of this act, and the commissioner or his authorized representatives are empowered to investigate violations of those provisions. b. When the commissioner finds that an employer has violated this act by failing to provide the notice required pursuant to section 2 of this act, the commissioner is authorized to assess and collect administrative penalties specified in a schedule of penalties to be promulgated by the commissioner by regulation. The penalty amount shall be based on the number of employees covered under the health benefits plan and shall not exceed $200 an employee. c. No administrative penalty shall be levied pursuant to this section unless the commissioner provides the alleged violator with notification of the violation and of the amount of the penalty by certified mail and an opportunity to request a hearing before the commissioner or his designee within 15 days following the receipt of the notice. If a hearing is requested, the commissioner shall issue a final order upon that hearing and a finding that a violation has occurred. If no hearing is requested, the notice shall become a final order upon expiration of the 15-day period. Payment of the penalty is due when a final order is issued or when the notice becomes a final order. d. Any penalty imposed pursuant to this section may be recovered with costs in a summary proceeding commenced by the commissioner pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). L.2003,c.27,s.3.

N.J. Stat. § 34:11A-19 Regulations.

4. The Commissioner of Labor shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), necessary to effectuate the provisions of sections 1 through 4 of this act. L.2003,c.27,s.4.

N.J. Stat. § 34:11A-20 Regulations relative to employer providing health benefits plan and domestic partners.

57. a. An employer that provides a health benefits plan as defined in section 2 of P.L.1997, c.192 (C.26:2S-2) to its employees and their dependents in this State may require that an employee contribute a portion or the full amount of the cost of dependent coverage under the plan for the employee's domestic partner as defined in section 3 of P.L.2003, c.246 (C.26:8A-3). b. Nothing in P.L.2003, c.246 (C.26:8A-1 et al.) shall be construed to require an employer to provide dependent coverage for an employee's domestic partner. c. Notwithstanding any other provisions of law to the contrary, the provisions of subsections a. and b. of this section shall not be deemed to be an unlawful discrimination under the "Law Against Discrimination," P.L.1945, c.169 (C.10:5-1 et seq.). L.2003,c.246,s.57.

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