NJ Labor Department Announces Municipal Prevailing Wage Threshold Rises to $19,375 on July 1

TRENTON – Effective July 1, the municipal prevailing wage threshold will rise from $16,263 to $19,375, meaning contracts awarded directly by municipal governing bodies must be valued at this amount or more to be covered by the New Jersey Prevailing Wage Act. Municipal government contracts below the threshold are not subject to the Act.

Municipal Prevailing Wage thresholds adjust every five years based on the Consumer Price Index (CPI). All other public agencies, including at the county level, 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 are based on the collective bargaining agreements established for a particular craft or trade where public work is performed. In New Jersey, these rates vary by county and by the type of work performed. Current and archived prevailing wage rates are available on the NJDOL website.

Applicable rates are those wages and fringe benefits in effect on the date the contract is awarded to a general contractor. All pre-determined rate increases listed must be paid, beginning on the dates specified. All rates are in effect for two years, at which time a new rate determination must be selected from the date of expiration.

Contractors interested in bidding on or engaging in public work subject to the Prevailing Wage Act must register with the NJDOL’s Division of Wage and Hour Compliance as required by the Public Works Contractor Registration Act.

For more information, visit: www.nj.gov/labor/wageandhour/prevailing-rates/public-works/.

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