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‘Electronic Bidding Construction Act’ Bill Approved by Assembly Panel (NJ)

Posted by National Alliance for Fair Contracting on

May 16, 2019, 3:00 pm
Insider NJ

(TRENTON) – Legislation sponsored by Assembly Majority Leader Lou Greenwald, Assemblyman Matt Milam and Assemblyman Bruce Land to modernize the bidding process for public works construction projects in New Jersey was approved Monday by the Assembly State and Local Government Committee.

The bill (A-1308), known as the Electronic Bidding Construction Act, would require public contracting agencies that contract for public works construction projects to use electronic procurement technologies, also known as online bidding, when a project’s value exceeds five million dollars.

“In the age of technological innovation, it’s time to update our public bidding process for construction projects,” said Greenwald (D-Camden, Burlington). “Nowadays, there are many e-procurement resources available to help businesses and government agencies conduct business online. These tools make the process simpler and more efficient.”

Under the measure, the State Treasurer would be required to set regulations for the electronic procurement of public works projects The regulations would create a procedure for a public contracting unit to follow once awarded a contract to oversee the administration of the e-procurement process.

A contractor or vendor seeking a contract for public works under the regulations would be classified with the Division of Property Management and Construction in the Department of the Treasury prior to submitting a bid.

“Requests for proposals, requests for information and other bids for public projects can all be done via the Internet,” said Milam (D-Cape May, Atlantic, Cumberland). “We should take advantage of e-procurement tools in order to streamline the public bidding process.”

“E-procurement will help us reduce costs, save time and give us the ability to easily store important records digitally,” said Land (D-Cape May, Atlantic, Cumberland). “This common-sense approach will benefit public contracting and government agencies alike.”

Additionally, regulations established by the State Treasurer would require certain bidding components and would set qualifications for firms providing e-procurement processes.

The bill now heads to the Assembly Speaker for further consideration.

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NJ Labor Department Returns $162K in Back Wages to Truck Drivers After Prevailing Wage Violation Investigation (NJ)

Posted by National Alliance for Fair Contracting on

NJ Labor Department Returns $162K in Back Wages to Truck Drivers
After Prevailing Wage Violation Investigation

May 22, 2019, 3:01 pm

TRENTON – An investigation conducted by the NJ Department of Labor and Workforce Development’s (NJDOL) Division of Wage and Hour Compliance revealed that Richard E. Pierson Construction, Inc. of Woodstown failed to properly pay its truck drivers $162,912.53, in accordance with the Garden State’s prevailing wage laws.

The inquiry, sparked by a formal complaint to NJDOL, determined that 48 of the company’s drivers were properly paid by the employer only when the drivers were on public works job sites, but were not paid the state’s prevailing wage for the time hauling materials to and from those job sites, which is against the law.

“Public contracting is a privilege – not a right, and New Jersey workers deserve to take home every single penny they have earned,” said Labor Commissioner Robert Asaro-Angelo. “We want employers to know that we take the state’s prevailing wage laws seriously, and we will continue to investigate these matters to protect our taxpayers’ investments.”

Richard E. Pierson Construction, Inc. fully cooperated with the investigation and, once advised of the law, agreed to perform a self-audit, repay the due back wages to employees, and pay administrative fees and penalties in excess of $58,000.

The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) establishes a prevailing wage level for workers engaged in public works projects to safeguard their efficiency and general well-being, and to protect workers – as well as employers – from the effects of serious and unfair competition. In New Jersey, these rates vary by county and type of work performed.

For more information on New Jersey’s wage and hour laws, please visit myworkrights.nj.gov.

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NJ Labor Department Bars Two South Jersey Contractors from Engaging in Public Work (NJ)

Posted by National Alliance for Fair Contracting on

April 11, 2019, 3:40 pm

TRENTON – The New Jersey Department of Labor and Workforce Development’s Wage and Hour Compliance Division has barred two public works contractors from doing business in the state for violations outside the state’s prevailing wage law, heralding a tough and progressive new enforcement approach against dishonest contractors.

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“As I have often said, working on public projects is a privilege, not a right,” said Labor Commissioner Robert Asaro-Angelo. “These cases signal a new and bold effort to ensure that privilege is extended only to contractors who follow our laws, and pertinent laws in other jurisdictions.”

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New Jersey already has one of the strongest prevailing wage laws in the country. The Public Works Contractor Registration Act requires all contractors, including named subcontractors, to register with the Labor Department before submitting price proposals or engaging in public works contracts exceeding the prevailing wage threshold of $15,444 for municipalities and $2,000 for non-municipal work.

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Labor Commissioner & Consumer Affairs Alert Garden State Accountants on Misclassification this Tax Season (NJ)

Posted by National Alliance for Fair Contracting on

Labor Commissioner & Consumer Affairs Alert Garden State Accountants on Misclassification this Tax Season

Misclassifying workers as 1099 independent contractors denies benefits and costs the state

March 20, 2019, 4:41 pm

TRENTON – This tax season, the New Jersey Department of Labor and Workforce Development, in conjunction with the New Jersey Division of Consumer Affairs, sent a letter to Garden State accountants reminding them of the legal standard for proper classification of employees and reinforcing the state’s commitment to ending worker misclassification.

By misclassifying workers as independent contractors – workers who receive 1099s, not W-2s – employers avoid paying unemployment and disability taxes, costing state and federal taxpayers untold millions of dollars. In New Jersey alone, auditors have identified more than $80 million in underreported employer contributions since 2010.

“One of the Labor Department’s primary responsibilities is protecting workers from unscrupulous business practices, and supporting responsible businesses by ensuring everyone plays by the same set of rules,” said Labor Commissioner Robert Asaro-Angelo. “We are engaging New Jersey’s accounting professionals to send the message to employers that they are not able to shirk their responsibilities simply because they have unlawfully elected to use a particular form.”

Workers misclassified as independent contractors are ineligible for the wage and overtime protections and benefits afforded to employees, and can find themselves underpaid and without basic labor and OSHA protections. Additionally, independent contractors are not covered under the National Labor Relations Act, which makes it more difficult for them to organize and collectively bargain with an employer.

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Toms River Wants To Hire More Locally (NJ)

Posted by National Alliance for Fair Contracting on

By Chris Lundy – January 31, 2019

TOMS RIVER – The Township Council passed a project labor agreement that would ensure that a majority of future contractors on large jobs would be local.

The point of a project labor agreement is to set some rules for a project before it even gets to the draft stage. The resolution authorizing them said that these agreements “lead to less disputes, delays,” as well as “fair and agreed to employment terms and more efficient project management.”

The resolution does not lay out all of the details of the agreement, but business administrator Don Guardian said that it will be similar to the one drafted by the school district in advance of the referendum to rebuild the schools, in that it would require 88 percent of workers to be local.

He said that the $5 million figure was chosen “since smaller projects may not require the expertise and professionalism that prevailing wage brings to the table.”


(See Article)

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Singleton Bill to Help Strengthen Prevailing Wage Clears Senate (NJ)

Posted by National Alliance for Fair Contracting on

December 17, 2018, 5:42 pm

TRENTON – Legislation sponsored by Senator Troy Singleton, which would allow the issuing of stop-work orders for failure to pay the prevailing wage, cleared the Senate today.

“Before all else, we must protect the rights of the men and women who are working hard each and every day to earn a decent and fair living,” said Senator Singleton (D-Burlington). “New Jersey has set a high standard for how we treat our workers, and if you contract with the state on public works projects, you must be prepared to abide by that standard.”

The bill, S-2557, would permit the Commissioner of the Department of Labor and Workforce Development to issue a stop-work order against an employer upon determining an employer has paid a worker less than the prevailing wage.

The stop-work order would apply to every site where the violation continues to occur. It could only be lifted by the commissioner if the department finds the employer has agreed to pay future wages at the required rate, return any back-wages owed to workers and pay any penalty assessed by the department. The commissioner may also require the employer to file periodic reports for two years certifying its compliance with the prevailing wage law as a condition of lifting the order.

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(View PDF Copy of Bill)

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New Brunswick to Strengthen ‘Wage Theft’ Law (NJ)

Posted by National Alliance for Fair Contracting on

By TOM HAYDON
January 22, 2019 at 1:23 PM

NEW BRUNSWICK, NJ – City business owners who fail to pay employees the wages they earn will face increased scrutiny and possible suspension of their operating licenses under a revised ordinance slated to be passed next month.

The ordinance is aimed at “wage theft,” when employers pay workers less than they are owed. Usually, the workers are day laborers and part-time employees, often at restaurants and landscaping companies. Many times the workers are undocumented.

New Brunswick passed an ordinance four years ago to address the problem – and has recouped thousands of dollars workers were not paid. Under that local law, any company facing a complaint from the state Department of Labor and Workforce Development for failure to pay wages can be denied a renewal of a city operating license.

The company is not permitted to operate until the outstanding payment is resolved.

However, last September, residents from the city’s Unity Square Community Center complained to the city council that the ordinance fails to go far enough. If a company is cited by the state for not coughing up when they owe workers, the city ordinance does not take effect until that company must re-apply for its annual operating license.
That would change under the revised ordinance now before city council.

(Read More)

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Former Obama labor official details how to stop misclassification

Posted by National Alliance for Fair Contracting on

Smith, speaking at forum in Newark, said interagency, coordinated enforcement and data sharing are two keys

By Alex Wolmart
Newark | Dec 6, 2018 at 1:56 pm

While many brought their worries and hardships, Patricia Smith brought solutions.

Smith – senior counsel at the Manhattan-based nonprofit the National Employment Law Project – broke down the issue of employee misclassification at an event sponsored by the New Jersey Department of Labor and Workforce Development on Wednesday in Newark.

Misclassification is misclassifying workers as independent contractors by filing 1099s rather than W2s. Employers who misclassify avoid having to pay unemployment and disability taxes.

Misclassification, by itself, is not illegal,” she said. “What’s illegal is the consequences of misclassification. When you find misclassification, you’re going to have, depending upon what you’re enforcing, a remedy.”

Smith, a former labor official in President Barack Obama’s administration, has been involved with misclassification for more than 20 years. She said interagency, coordinated enforcement; data sharing; a robust public and press outreach strategy; agency cross-training and joint employment; criminal referrals in appropriate cases; and required reports to either the Legislature or governor on a frequent basis are how the misclassification of employees as independent contractors will be remedied.

Labor Commissioner Robert Asaro-Angelo led the forum. He told the room of a few dozen workers, union reps and lawyers that Gov. Phil Murphy gets it.

“We’re at a time in our state where our governor and this administration wants to stand up for the right to protections, for the women and men who work hard and deserve the opportunities and benefits that they are entitled to,” he said.

And while many public advocates came to give their testimony, it was Smith who had the most to say.

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Singleton Bill to Help Strengthen Prevailing Wage Clears Committee (NJ)

Posted by National Alliance for Fair Contracting on

December 11, 2018, 11:05 am

TRENTON – Legislation sponsored by Senator Troy Singleton which would allow the issuing of stop-work orders for failure to pay the prevailing wage cleared the Senate Budget and Appropriations Committee.

“Before all else, we must protect the rights of the men and women who are working hard each and every day to earn a decent and fair living,” said Senator Singleton (D-Burlington). “New Jersey has set a high standard for how we treat our workers, and if you contract with the State on public works projects, you must be prepared to abide by that standard.”

The bill, S-2557, would permit the Commissioner of the Department of Labor and Workforce Development to issue a stop-work order against an employer upon determining that an employer has paid a worker less than the prevailing wage. The stop-work order would apply to every site where the violation continues to occur. It could only be lifted by the commissioner if the Department finds the employer has agreed to pay future wages at the required rate, return any back-wages owed to workers and pay any penalty assessed by the Department. The commissioner may require the employer to file periodic reports for two years certifying its compliance with the prevailing wage law as a condition of lifting the order.

Under the bill, the commissioner would be allowed to investigate the wage records of an employer in the construction industry upon the complaint of an employee for failure to pay required wages and contributions. The commissioner would be permitted to issue subpoenas in connection with the investigation and fine individuals who willfully hinder it.

If an employer does not stop business despite being issued a stop-work order, the commissioner would be permitted to assess a civil penalty of $5,000 per day.

The bill was released from committee by a vote of 11-0, and next heads to the full Senate for further consideration.

(See Article)

(See Copy of Bill)

New Jersey Passes Laws on Sick Leave and Pay Equity; Will Tackle Worker Misclassification (NJ)

Posted by National Alliance for Fair Contracting on

The National Law Review
Wednesday, May 9, 2018

A little more than 100 days into his tenure, New Jersey Governor Phil Murphy has made it clear that employment is one of his top priorities. In the past two weeks, Gov. Murphy has signed a Paid Sick Leave and an Equal Pay bill into law and established a Task Force on Employee Misclassification.

Paid Sick Leave

The New Jersey Paid Sick Leave Act was signed into law on May 2, 2018, and takes effect on October 29, 2018. It will require New Jersey employers of all sizes to offer their employees one hour of sick leave for every 30 hours worked.

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Task Force on Employee Misclassification

On May 3, 2018, Gov. Murphy signed an executive order establishing a Task Force on Employee Misclassification. Misclassification is when workers are incorrectly labeled as independent contractors rather than employees. Workers who are incorrectly classified frequently are not provided benefits and other protections available to employees, such as minimum wage, overtime compensation, family and medical leave, unemployment insurance, and workers’ compensation.

The New Jersey Task Force will be charged with a number of responsibilities to combat employee misclassification, including:

  • Examining and evaluating existing misclassification enforcement by executive departments and agencies
  • Developing best practices by departments and agencies to increase coordination of information and efficient enforcement
  • Developing recommendations to foster compliance with the law, including by educating employers, workers, and the public about misclassification
  • Conducting a review of existing law and applicable procedures related to misclassification

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