Effective July 1, the municipal prevailing wage threshold in New Jersey will increase from $16,263 to $19,375. This adjustment means that contracts awarded directly by municipal governing bodies must meet or exceed this value to be covered by the New Jersey Prevailing Wage Act. Contracts below this threshold are not subject to the Act.
The municipal prevailing wage thresholds are adjusted every five years based on the Consumer Price Index (CPI). Other public agencies, including county-level entities, municipal boards of education, and utility authorities, remain under a prevailing wage threshold of $2,000, which does not adjust.
“The established wages under the Prevailing Wage Act ensure equitable compensation for workers while leveling the playing field among employers,” said Robert Asaro-Angelo, Commissioner of the New Jersey Department of Labor and Workforce Development (NJDOL). “It is important that our municipalities uphold their obligations under the law, which aligns these wages with industry standards to prevent the erosion of skilled labor while promoting economic fairness.”
Prevailing wage rates in New Jersey are determined based on collective bargaining agreements specific to particular crafts or trades where public work is performed. These rates vary by county and type of work. Current and archived prevailing wage rates can be found on the NJDOL website.
Applicable rates include both wages and fringe benefits effective on the date a contract is awarded to a general contractor. All pre-determined rate increases must be paid starting from specified dates. Rates are effective for two years, after which a new rate determination must be selected from the expiration date.
Contractors interested in bidding on or engaging in public work subject to the Prevailing Wage Act must register with NJDOL’s Division of Wage and Hour Compliance as mandated by the Public Works Contractor Registration Act.
