N.J.S.A. 34:11-56.38 — Prohibition against award of contract to non-complying contractors; definition; presumption.

34:11-56.38 Prohibition against award of contract to non-complying contractors; definition; presumption. 14. The public body awarding any contract for public work, or otherwise undertaking any public work, or entering into a lease or agreement to lease pursuant to which public work is to be done, shall first ascertain from the commissioner the list of names of contractors or subcontractors who have failed to pay prevailing wages as determined in section 13 of P.L.1963, c.150 (C.34:11-56.37), and no contract shall be awarded to such contractor or subcontractor, or to any firm, cooperative, corporation, or partnership in which such contractor or subcontractor has an interest until three years have elapsed from the date of listing as determined in section 13 of P.L.1963, c.150 (C.34:11-56.37). For purposes of this section, �cooperative� shall mean a system of collective ownership of a corporation or other legal entity in which the shareholders or other co-owners each also have a long term proprietary interest or other long term arrangement of control over the operations of the business. For purposes of this section, �vendor� shall mean any person, firm, corporation, or other entity which provides or offers or proposes to provide goods or services to or perform any contract. For purposes of this section, "interest" shall mean an interest in the firm, corporation, or partnership bidding on or performing public work, whether having the interest as an owner, partner, officer, manager, employee, agent, vendor, consultant, or representative. The term may also include, but not be limited to, all instances in which the contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has received payments, whether those payments are in the form of cash or any other form of compensation from the firm, corporation, or partnership, or when the contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has entered into any contract or agreement with the firm, corporation, or partnership for services performed or to be performed, for services that have been or will be assigned or subletted, or for the sale, rental, or lease of vehicles, tools, equipment, or supplies during the period from the initiation of the proceedings under section 13 of P.L.1963, c.150 (C.34:11-56.37) against the contractor or subcontractor until three years have elapsed from the date that the contractor or subcontractor has been listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37). The term "interest" shall not include shares held in a publicly traded corporation if the shares were not received as compensation after the initiation of proceedings under section 13 of P.L.1963, c.150 (C.34:11-56.37) from a firm, corporation, or partnership bidding or performing public work. A rebuttable presumption that a contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has an interest in another firm, corporation or partnership may arise if the two share any of the following capacities or characteristics: (1) perform similar work within the same geographical area and within the same monetary range, (2) occupy the same premises, (3) have the same telephone number or fax number, (4) have the same email address or internet website, (5) employ substantially the same administrative employees, (6) utilize the same tools and equipment, (7) employ or engage the services of any listed person or persons involved in the direction or control of the other, or (8) list substantially the same work experience in order to obtain the requisite pre-qualification rating from the Department of the Treasury, or any other entity, to participate in any public work. If a rebuttable presumption has arisen that a contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has an interest in another firm, corporation or partnership, the adversely affected contractor or subcontractor, including the firm, corporation, or partnership, which would by virtue of a finding of "interest" be prevented under this section from being awarded public work, may request a hearing, which shall be conducted in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). L.1963,c.150,s.14; amended 1990, c.27, s.7; 2007, c.67, s.1; 2025, c.180, s.1. 34:11-56.39. Penalty for discrimination 15. Any employer who discharges or in any other manner discriminates against any worker because the worker has made any complaint to his employer, to the public body or to the commissioner that he has not been paid wages in accordance with the provisions of this act, or because the worker has caused to be instituted or is about to cause to be instituted any proceeding under or related to this act, or because the worker has testified or is about to testify in any such proceeding shall be guilty of a disorderly persons offense and shall, upon conviction therefor, be fined not less than $100 nor more than $1,000. As an alternative to or in addition to any other sanctions provided by law for violations of any provision of P.L.1963, c.150 (C.34:11-56.25 et seq.), when the Commissioner of Labor finds that an employer has violated that act, the commissioner is authorized to assess and collect administrative penalties, up to a maximum of $250 for a first violation and up to a maximum of $500 for each subsequent violation, specified in a schedule of penalties to be promulgated as a rule or regulation by the commissioner in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). When determining the amount of the penalty imposed because of a violation, the commissioner shall consider factors which include the history of previous violations by the employer, the seriousness of the violation, the good faith of the employer and the size of the employer's business. No administrative penalty shall be levied pursuant to this section unless the Commissioner of Labor provides the alleged violator with notification of the violation and of the amount of the penalty by certified mail and an opportunity to request a hearing before the commissioner or his designee within 15 days following the receipt of the notice. If a hearing is requested, the commissioner shall issue a final order upon such hearing and a finding that a violation has occurred. If no hearing is requested, the notice shall become a final order upon expiration of the 15-day period. Payment of the penalty is due when a final order is issued or when the notice becomes a final order. Any penalty imposed pursuant to this section may be recovered with costs in a summary proceeding commenced by the commissioner pursuant to "the penalty enforcement law" (N.J.S.2A:58-1 et seq.). Any sum collected as a fine or penalty pursuant to this section shall be applied toward enforcement and administration costs of the Division of Workplace Standards in the Department of Labor. L.1963,c.150,s.15; amended 1991,c.205,s.20.

This is the verbatim text of N.J.S.A. 34:11-56.38, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.