TRENTON, NJ – New Jersey lawmakers are moving to strengthen enforcement of the state’s wage laws with a bill that would make certain violations of the New Jersey Prevailing Wage Act a criminal offense. The measure, Assembly Bill 4374, was reported favorably by the Assembly Labor Committee on January 23, 2025.
The Prevailing Wage Act requires contractors on public works projects to pay workers wages and benefits consistent with local industry standards. Under current law, employers who falsify wage records or submit deceptive information on public works contractor registration forms face civil penalties, including fines ranging from $2,500 to $25,000 and disqualification from public contracts for up to three years.
Assembly Bill 4374 would elevate such conduct to a fourth-degree crime under New Jersey’s Criminal Code. Violators could face up to 18 months in prison, a fine of up to $10,000, or both, in addition to the existing administrative penalties.
The legislation also establishes procedures for enforcement. It requires county prosecutors or the Commissioner of Labor and Workforce Development to notify the Attorney General when a potential violation occurs. The Attorney General would then determine whether to assume control of the investigation under the Criminal Justice Act of 1970 or refer the matter to a county prosecutor for prosecution.
Supporters say the bill closes gaps in enforcement by adding criminal accountability for employers who knowingly defraud workers on taxpayer-funded projects, ensuring fair pay and deterring repeat offenders.