Prevailing Wage Requirements Extended to Projects Receiving Financial Assistance from the New Jersey Board of Public Utilities

September 8, 2009
Client Alert Newsletter September 2009

On July 15, 2009, Governor Corzine signed legislation requiring the Board of Public Utilities ("BPU") to adopt rules governing the applicability of New Jersey's prevailing wage law to construction projects undertaken in connection with BPU financial assistance. The law broadly defines the term "BPU financial assistance" to include any rebate, grant, credit, or other such incentive that has been approved, funded, authorized, administered or provided by the BPU, whether received before, during or after the construction project is complete. The legislation also includes three carve-outs where the prevailing wage requirements will not apply: (1) to construction contracts totaling less than $11,892; and where the BPU financial assistance is provided either (2) directly to a homeowner, or (3) for any new construction or weatherization of a single-family home, town home, row home, apartment building or multi-family home of four stories of less. The BPU's rules regarding this controversial extension of the state's prevailing wage requirements are currently being developed.