New Jersey

  • Project Labor Agreements

    Allows government entities to implement a PLA mandate if conditions are appropriate on projects worth more than $5 million. Projects built using a P3 must utilize a PLA.

  • Prevailing Wage

    Yes; if the work is done for a municipality, then the threshold is $16,263, but if the work is done for any other public entity, including boards of education and municipal utility authorities, the threshold is $2,000.

  • Right to Work

    No.

  • Public-Private Partnerships

    Statute authorizes state and its subdivisions, including counties, municipalities and school districts, to enter into P3 agreements with private funding sources provided they follow additional mandates such as abiding by the state’s prevailing wage law and utilizing a PLA for construction of the project. Unsolicited bids are allowed.

  • Workforce Development Incentives

    Current labor supply satisfies 97% of peak labor demand.

    State offered $77,299,000 in grants and incentives for workforce preparation and development in 2020.

    State has restrictive apprenticeship mandate policies for public construction projects.

     

  • Career and Technical Education

    96% of CTE high school graduates are placed in colleges or careers.

    New Jersey recognizes NCCER as an approved curriculum for CTE programs.

  • Job Growth Rate

    2.5%.

Monthly Unemployment Rate in New Jersey

Industry Overview

Prompt Pay

Private: Owner must pay prime within 30 days after billing date.
Public: Owner must pay prime within 30 days after billing date.
Subs: For both public and private, the prime must pay the sub and the sub must pay lower tiers within 10 days of completion of work unless otherwise agreed.

Immigration/E-Verify Mandate

No law in place.

Percentage of State GDP From Nonresidential Construction

3.1%.

Incidence Rate

2.9

Occupational Safety & Health Oversight (State vs. Federal)

State plan covers state and local government workplaces.

Percentage of Union Membership in Private Construction

21.5%

Marijuana Legalization Status

Fully legal.

Business Facts

Minimum Wage

12.00

Percentage of Pensions Funded

36%

Effective Real-Estate Tax Rate

2.21%

Corporate Income Tax Rate(s)

10.5

State and Local Public Construction Expenditures (in millions)

$5,666