Governor Murphy recently signed legislation that requires employers or contractors engaged in work for a public body, which includes PILOT projects, to submit payroll records to the Department of Labor. P.L. 2025, c. 152 will take effect October 20, 2026; however, the Department of Labor may take anticipatory administrative actions in advance to implement this new law.
N.J.S.A. 34:11-56.31 has been amended to expand the Department of Labor Commissioner’s authority to investigate and ascertain the wages of workers to include other work for a public body. The new law defines “work for a public body” used in N.J.S.A. 34:11-56.31 as construction, reconstruction, demolition, alteration, custom fabrication, duct cleaning, or repair work, or maintenance work, which is done under contract and paid for in whole or in part out of the funds of a public body, done on any property or premises owned or leased by the public body or under agreement to be owned or leased by the public body, or undertaken in connection with any loan, loan guarantee, grant, incentive, expenditure, investment, tax exemption or other financial assistance approved, funded, authorized, administered, or provided by a public body, or undertaken to fulfill any condition of receiving any of the financial assistance.
In addition, any employer or contractor engaged in any work for a public body, within 10 days of receipt of a request, is required to file with the Department of Labor any and all records, books, registers, payroll, and other records related to the question of wages, hours, and other conditions of employment. If the employer fails to provide the requested records within 10 days, the Department of Labor may direct, within 15 days, that the public entity’s financial officer charged with disbursement of funds for the public project to withhold up to 25% of the payment, not to exceed $100,000. Any funds held must be immediately released upon a notice from the Department of Labor indicating that the records request has been satisfied.
The law requires the Department of Labor to differentiate between the manner of filing records for a contractor subject to the Prevailing Wage Act and a contractor not subject to the Prevailing Wage Act. The law also exempts a contractor who performs work for a public body and who is not otherwise required to register under the Public Works Contractor Registration Act from the definition of contractor as it pertains to that registration requirement.
We suggest that you review this new law with your municipal attorney and procurement officials.
Contact: Lori Buckelew, Deputy Executive Director, lbuckelew@njlm.org, 609-695-3481, x112.