Prevailing Wage and Davis-Bacon Compliance in New Jersey
eMars provides certified payroll and compliance solutions tailored primarily for federal projects and select state jurisdictions. While many agencies accept the standard WH-347 form, some states will require their own form. For questions about supported jurisdictions, please contact our team directly.
New Jersey State Compliance Forms
eMars provides streamlined access to essential New Jersey state-specific compliance forms with auto-fill capabilities. These forms are designed to simplify your payroll reporting and workforce documentation:
Available Forms:
- MW-562 Certified Payroll Report (Auto-Fill)
- AA-202 Monthly Project Workforce Utilization Report (Auto-Fill)
- City of Newark Daily Report (Auto-Fill)
- Authorization of Voluntary Deduction (Auto-Fill)
- Certified Payroll Signature Authorization Form (Auto-Fill)
- Minority & Gender Reporting
Components of Wage Determinations
Both federal and state wage determinations in New Jersey include:
- Basic Hourly Rate: The minimum hourly wage paid directly to workers in a specific job classification, excluding fringe benefits. For federal projects, this rate is set by DOL; for NJ public works, it is set by NJDOL based on the applicable CBA for the craft and county.
- Fringe Benefits: Health insurance, pensions, paid leave, or other benefits paid on top of the basic rate.
- Total Hourly Rate: The sum of the basic hourly rate and the fringe benefits.
For example, if the basic hourly wage is $30 and fringe benefits are valued at $5, the total hourly rate would be $35. If no fringe benefits are provided, the contractor must pay the full $35 in wages.
Compliance for Contractors and Subcontractors
Contractors and subcontractors working on public works projects in New Jersey must:
Determine Applicable Wage Rates
Determine Applicable Wage Rates
For NJ public works projects, the public body requests an official wage determination from NJDOL; the determination in effect on the contract award date applies. For federally funded projects, pull the DOL wage determination from SAM.gov, applying the determination in effect ten days before bid opening.
Submit Certified Payroll Reports
Submit Certified Payroll Reports
For NJ public works, file certified payroll reports online via the New Jersey Wage Hub within 10 days of the payment of wages. For federally funded projects, file Form WH-347 weekly with the contracting agency.
Post Wage Rates On-Site
Post Wage Rates On-Site
Maintain Accurate Records
Maintain Accurate Records
Under the NJ Prevailing Wage Act, keep payroll records for at least two years from the date of payment, available to NJDOL and the public body during business hours. Federal Davis-Bacon recordkeeping runs three years after the prime contract is completed and requires worker telephone and email contact information on DOL request.
Penalties for Non-Compliance
Failure to comply with prevailing wage laws in New Jersey can result in:
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Criminal Liability first violations are disorderly persons offenses with fines; repeat violations carry fines and possible imprisonment
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Three-Year Debarment from bidding on or working on public works projects in New Jersey for contractors determined to be serious offenders, with names published on NJDOL's debarment list
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Administrative Fines typically up to $2,500 for a first violation and $5,000 for subsequent violations
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Loss or Denial of Public Works Contractor Registration
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Back Wages owed to underpaid workers
Unique Aspects of New Jersey's Prevailing Wage System
- Leased-Property Coverage: NJ's prevailing wage definition reaches privately funded construction on any property if at least 55% of the property is leased by a public body (or subject to a lease agreement) and the leased portion exceeds 20,000 square feet.
- CBA-Based Rates with Predetermined Increases: NJDOL sets prevailing wage rates from the collective bargaining agreements in effect for each craft and county. The rate that applies to a contract is the rate in effect on the date of award, and all predetermined rate increases listed at that time must be paid on the dates specified.
- Mandatory Contractor Registration Under PWCRA: NJ requires contractors and subcontractors to register with the labor department before bidding on covered public works, with online-only applications, and annual or biennial renewal.
- Online Certified Payroll via NJ Wage Hub: Certified payrolls for NJ public works must be filed online through the New Jersey Wage Hub portal, replacing prior paper and email submission methods.
- Three-Year Debarment for Serious Offenders: NJDOL maintains a public debarment list, and contractors determined to be serious offenders are barred from bidding on or working on NJ public works contracts for three years.
Relevant Resources
Davis-Bacon Wage Determinations: SAM.gov
New Jersey Department of Labor and Workforce Development: Prevailing Wage Information: New Jersey Prevailing Wage Information
- DOL Form WH-347 (Revised January 2025)
- U.S. Department of Labor Wage and Hour Division: Davis-Bacon and Related Acts
- Updating the Davis-Bacon and Related Acts Regulations - DOL Final Rule
- NJ Public Works Contractor Registration Portal (online application)
- NJ Wage Hub - Certified Payroll Reporting Tool
For the most accurate and current information on prevailing wage requirements, consult the U.S. Department of Labor or your state's official labor and workforce development website.
New Jersey Prevailing Wage FAQs
Does New Jersey have a state-specific prevailing wage law?
Yes. The New Jersey Prevailing Wage Act (N.J.S.A. 34:11-56.25 et seq.) applies to public works projects funded in whole or in part by a public body, with NJDOL setting rates by craft and county. Coverage attaches at $19,375 for contracts awarded directly by municipal governing bodies (as of July 1, 2024) and at $2,000 for all other public bodies, including boards of education and municipal utility authorities. Contractors and subcontractors must also register under the Public Works Contractor Registration Act (PWCRA, N.J.S.A. 34:11-56.48 et seq.) before bidding. Federal Davis-Bacon also applies on federally funded projects.
How are prevailing wage rates determined in New Jersey?
NJDOL's Division of Wage and Hour Compliance sets New Jersey prevailing wage rates from the collective bargaining agreements in effect for each craft and county. The rate that applies to a contract is the rate in effect on the date of award, and all predetermined rate increases listed at that time must be paid on the dates specified. Public bodies request an official wage determination from NJDOL for each public works contract. For federally funded projects, the U.S. Department of Labor sets rates published on SAM.gov.
What are the penalties for non-compliance with prevailing wage laws in New Jersey?
Penalties include back wages owed to underpaid workers, criminal liability under N.J.S.A. 34:11-56.35 (first violations are disorderly persons offenses with fines of $100 to $500; repeat violations carry fines of $500 to $1,000 and possible imprisonment of 10 to 90 days), administrative fines typically up to $2,500 for a first violation and $5,000 for subsequent violations under N.J.A.C. 12:60-7, and three-year debarment from public works for serious offenders. Federal Davis-Bacon penalties also apply to federally funded projects.
How are fringe benefits handled under New Jersey’s prevailing wage laws?
Fringe benefits are part of the total prevailing wage that must be paid to workers. Contractors can provide bona fide fringe benefits such as health insurance, pensions, or paid leave, or pay the equivalent value as additional cash on top of the basic hourly rate. Total compensation must equal at least the basic rate plus the fringe rate listed on the applicable NJDOL or SAM.gov wage determination. If no fringe benefits are provided, the full total hourly rate must be paid as cash directly to the worker.