Madden Bill Revising Part of Prevailing Wage Act Clears Budget Committee

TRENTON – A bill sponsored by Senator Fred Madden to revise part of the New Jersey Prevailing Wage Act to include certain types of fabrications was approved by the Senate Budget and Appropriations Committee today.

The bill (S-2454) expands the definition of “custom fabrication” in the Prevailing Wage Act to include components or structures pre-fabricated to specifications for a particular public works project. It would also be expanded to apply to other materials finished into components without further modification for use in a project or type or classification of a project.

In its current form, the Prevailing Wage Act requires individuals employed on public works projects, certain wages and benefits, the rates of which are established by the Department of Labor and Workforce Development.

“Employers who are given government contracts are under a special obligation to make sure that their employees are taken care of,” said Senator Madden (D-Camden, Gloucester). “It’s time to close the loophole that has allowed some employers to skirt by this obligation.”

Off-site manufacturing, assembling, and furnishing of material or equipment is not covered under current law, unless they fall under the definition of “custom fabrication.” Currently, “custom fabrication” is defined as “the fabrication of plumbing, heating, cooling, ventilation or exhaust duct systems, and mechanical insulation.”

The bill was approved by a vote of 11-1, with one abstaining. It next goes to the full Senate.