Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Criminalization Prevailing Wage Violations topic
No spam. Unsubscribe anytime.
Committee releases bill creating criminal penalties for certain prevailing-wage violations
Summary
The committee released A4374, which elevates certain falsification and fraudulent acts under the New Jersey Prevailing Wage Act to crimes under Title 2C, adds penalties of up to $10,000 and up to 18 months' imprisonment, and requires notification to the attorney general for possible supersession of county prosecutors.
The Assembly Labor Committee voted to release Assembly Bill A4374 after hearing testimony and debate in early 2025. The bill would make certain violations of the New Jersey Prevailing Wage Act criminal offenses under Title 2C of the New Jersey Criminal Code, in addition to existing civil penalties.
Under current law, certain fraudulent acts related to prevailing-wage compliance — including falsifying required records or willfully making false statements on required public-works or contractor registration forms — are disorderly persons offenses punishable by fines between $2,500 and $25,000 and disqualification from bidding for up to three years. A4374 would make a person who commits such a violation guilty of a crime of the third degree under Title 2C; the transcript notes that a crime of the degree is punishable by a fine of up to $10,000, a term of imprisonment of up to 18 months, or both.
The bill would also require a county prosecutor or the Commissioner of Labor and Workforce Development to notify the Attorney General when a violation under the bill has occurred so the Attorney General may determine whether to supersede a county prosecutor for investigation or prosecution, or to refer the matter back to the county prosecutor.
Eileen Keane of the National Federation of Independent Business testified in opposition, saying her members respect the bill's intent but worry the heightened penalties could sweep in small businesses for honest mistakes. Keane said, “the penalties that the changes to the current law provide, are really steep,” and described a recent case in which a South Jersey subcontractor with about 15 employees was investigated by the Department of Labor and Workforce Development and later had the matter thrown out in court after costly litigation. She added that “these kind of mistakes do happen.”
An unnamed committee member raised concern about the bill’s lack of a statutory definition of “employer,” asking whether a business owner could face criminal liability for acts of which they were not aware. The committee chair said the concern could be taken up with sponsors for clarification.
On a recorded vote the committee released the bill with amendments. Committee members recorded a mix of “yes” and “no” votes; the clerk announced that the bill is released. The committee did not record a formal mover or seconder in the transcript.
A4374 will proceed to additional legislative consideration with the committee’s amendments and the issues raised in testimony and member questioning noted on the record.
