EGAN/VAN DREW/SCALERA PREVAILING WAGE LEGISLATION PASSES ASSEMBLY

(TRENTON) - The Assembly today approved legislation Assemblymen Joseph Egan, Jeff Van Drew and Fred Scalera sponsored to prohibit debarred contractors from using a new business to circumvent prevailing wage requirements.

 "This is a loophole we must close to stop unscrupulous contractors who have a history of refusing to pay prevailing wages," said Egan (D-Middlesex).

The bill (A-3889) would prohibit a debarred contractor from setting up a new corporation or changing the name of a corporation to avoid paying employees a prevailing wage. The bill addresses debarments resulting from a firm's failure to pay the prevailing wage on public works, and would strengthen New Jersey's already tough "Prevailing Wage Act," signed into law in early 2004.

"Making sure these contractors pay a prevailing wage is only fair to those who follow the law," said Van Drew (D-Cape May/Atlantic/Cumberland).

This bill also would prohibit debarred contractors or subcontractors from having an interest in a company bidding on public work as an owner, partner, officer, manager, employee, agent, consultant, or representative.

"We are committed to helping the Department of Labor prevent violations of prevailing wage laws from continuing to receive public contracts by establishing a new firm under a different name," said Scalera (D-Essex/Bergen/Passaic).

The measure was approved 62 to 13. It now heads to the Senate for further consideration.

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