At a Glance
Quick Answer
New Jersey has an active prevailing wage law (New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.)). Administered by New Jersey Department of Labor and Workforce Development. Certified payroll is required. Federal Davis-Bacon applies to all federal projects.
New Jersey's Prevailing Wage Act covers public works construction contracts. Municipal government contracts have a higher threshold that is adjusted periodically. Rates vary by county and trade classification.
Context
Prevailing Wage & Bidding in New Jersey
If you are bidding public construction in New Jersey, the Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) drives your labor line items, and the trigger threshold depends on who owns the project. For municipal government contracts the threshold sits around $20,125 (it is adjusted periodically), but for every other public entity, utilities, school boards, and authorities, coverage kicks in at just $2,000. That low ceiling means almost any meaningful public job outside of a small town contract is a prevailing-wage job. Price your estimate to the Commissioner of Labor's determinations rather than your shop's standard rates, because New Jersey ties rates to local collective bargaining agreements that vary by county and trade classification.
Build certified payroll into your overhead from day one. The New Jersey Department of Labor and Workforce Development requires weekly certified payrolls, and underpayment exposes you to back wages plus interest, civil penalties, and debarment from public work. Willful violations can carry criminal exposure. Correctly classifying each worker is the single biggest pitfall: paying a laborer rate for work that falls under a higher mechanic classification is the most common audit finding and the fastest way to lose a bid's profit to a back-wage claim.
When a project carries federal money, Davis-Bacon also applies, and you must pay the higher of the two rate schedules trade by trade. Estimators should pull both determinations during the bid phase so the labor burden is right before the number is submitted. Underbidding the labor rate is rarely recoverable through a change order, so confirm county-specific rates, fringe obligations, and overtime rules before you commit a price.
Details
Coverage Details
State Law Details
- Law
- New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.)
- Agency
- New Jersey Department of Labor and Workforce Development
- Thresholds
- Municipal government contracts: $20,125 or more (2025)All other public entities (utilities, school boards, etc.): $2,000 or more
- Certified Payroll
- Required
Federal Davis-Bacon Coverage
The federal Davis-Bacon Act applies to all federally funded or federally assisted construction contracts over $2,000 in New Jersey. This includes projects funded by federal agencies, FHWA highway projects, HUD housing, and projects receiving federal grants.
Reference
Key Facts
Municipal contract threshold: ~$20,125 (adjusted periodically)
Other public entity threshold: $2,000
Wage rates vary by county and trade classification
Rates are based on collective bargaining agreements in each locality
Commissioner of Labor sets prevailing wage determinations
Enforcement
Penalties
Contractors face payment of back wages plus interest, debarment from public contracts, and civil penalties. Criminal penalties may apply for willful violations.
Resources
Related Tools & Templates
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FAQ
Questions Contractors Ask
Does New Jersey have a prevailing wage law?
Yes. New Jersey has an active state prevailing wage law: New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.). New Jersey's Prevailing Wage Act covers public works construction contracts. Municipal government contracts have a higher threshold that is adjusted periodically. Rates vary by county and trade classification.
Does Davis-Bacon apply in New Jersey?
Yes. The federal Davis-Bacon Act applies to all federally funded construction projects over $2,000 in New Jersey, regardless of state law. Contractors must pay the prevailing wage rate determined by the DOL for the project location.
Is certified payroll required in New Jersey?
Yes. New Jersey requires certified payroll on state prevailing wage projects. Additionally, certified payroll is always required on federal Davis-Bacon projects using form WH-347.
What are the penalties for prevailing wage violations in New Jersey?
Contractors face payment of back wages plus interest, debarment from public contracts, and civil penalties. Criminal penalties may apply for willful violations.
What is the prevailing wage threshold for school board projects in New Jersey?
School boards fall under the general public-entity threshold of $2,000, not the higher municipal threshold. Because the New Jersey Prevailing Wage Act treats school districts and similar bodies separately from municipal governments, nearly all district construction work requires prevailing wages, certified payroll, and county-specific trade rates from the Commissioner of Labor.
How are New Jersey prevailing wage rates determined for each trade?
The Commissioner of Labor issues prevailing wage determinations based on the collective bargaining agreements in effect for each locality and trade. Rates therefore vary by county and classification. Estimators should pull the current determination for the project's county rather than assuming statewide rates, since differences between counties can materially change a bid.
What happens if a New Jersey contractor underpays prevailing wages?
The contractor owes back wages plus interest and faces civil penalties from the Department of Labor and Workforce Development, along with possible debarment from future public contracts. Willful violations can trigger criminal penalties. Misclassifying workers into lower-paid trades is the most common cause of these enforcement actions.