Wall, NJ — A New Jersey construction company that builds highways and public infrastructure is suing state agencies, arguing that hiring quotas and union requirements tied to public contracts are driving up costs and threatening its business model.
Earle Asphalt Company, a Monmouth County-based contractor with more than 650 employees, filed a federal lawsuit challenging state rules that require firms to meet race- and sex-based hiring targets and, in some cases, operate under union-controlled labor agreements. The company says those mandates could impact its ability to compete for public work—projects that make up roughly 80% of its business.
The case, filed against the New Jersey Turnpike Authority, Ocean County, and Evesham Township, adds to a growing list of legal challenges targeting state-level labor and contracting policies.
Lawsuit targets hiring rules and union requirements
At the center of the lawsuit are New Jersey’s “targeted goals,” which set employment benchmarks for minorities and women across 18 construction trades. Contractors working on public projects must submit monthly reports tracking workforce demographics and face penalties or reduced competitiveness if they fail to meet those goals.
Earle Asphalt argues the requirements force companies to make employment decisions based on race and sex, rather than qualifications.
“New Jersey is forcing contractors to sort workers by race and sex — a practice the Constitution has never tolerated,” said Erin Wilcox, senior attorney with Pacific Legal Foundation, which is representing the company alongside the Wisconsin Institute for Law & Liberty (WILL).
The lawsuit also challenges the state’s use of Project Labor Agreements (PLAs), which require contractors on certain public projects to work under union-negotiated terms covering wages, hours, and working conditions.
—
Key Points
• Earle Asphalt filed federal lawsuit challenging NJ hiring quotas and union labor mandates
• Company says rules threaten its access to public contracts, which make up 80% of revenue
• Legal groups argue policies violate Equal Protection and First Amendment rights
—
Clash over “open shop” model
Earle Asphalt has operated as a non-union, or “open shop,” company since its founding in 1968. The company says its model allows direct communication between workers and management without union representation.
Under current New Jersey policies, contractors that do not meet hiring benchmarks must either take additional compliance steps or enter agreements with unions that can supply workers to meet those targets.
In addition, expanded PLA requirements—broadened in recent years to apply to more public projects—can require companies to accept union representation for the duration of a job.
“New Jersey is telling Earle Asphalt… how to do what they do best—build,” said WILL Deputy Counsel Lucas Vebber. “Forcing a family business to hire union and then use racial quotas isn’t just unconstitutional; it’s an example of government intervention contributing to rising costs.”
Constitutional claims at the center
The lawsuit argues the hiring requirements violate the Fourteenth Amendment’s Equal Protection Clause, which limits the use of race- and sex-based classifications by the government.
Attorneys also claim the PLA requirements violate the First Amendment, arguing they compel contractors to associate with unions and accept their representation as a condition of winning public work.
State officials have not yet publicly responded to the lawsuit’s claims in court filings.
Broader impact on costs and competition
The case arrives as New Jersey faces ongoing concerns about infrastructure costs and public spending. Earle Asphalt and its legal team argue that limiting how contractors hire and operate reduces competition and increases project expenses.
Supporters of the state’s policies, however, have historically argued that hiring goals and PLAs expand workforce diversity, ensure labor standards, and promote stability on large public projects.
The outcome of the case could influence how New Jersey—and potentially other states—structure requirements for companies seeking taxpayer-funded contracts.
Long-standing company now at legal crossroads
Founded in 1968 in Wall, New Jersey, Earle Asphalt has grown from a small paving operation into a major infrastructure contractor involved in road construction, bridge work, and sewer systems across the state.
The company also highlights its second-chance hiring efforts, including employing individuals with prior incarceration histories, as part of its workforce model.
With the majority of its revenue tied to government contracts, the lawsuit argues that compliance with current mandates could reshape how the company operates—or limit its ability to bid on future projects.
What happens next
The case will move forward in federal court, where judges will evaluate whether New Jersey’s hiring and labor requirements meet constitutional standards.
Related legal efforts across the country have similarly challenged affirmative action policies and union-related mandates in public contracting, signaling a broader national debate over how governments balance equity goals with constitutional limits.
Current status: The lawsuit has been filed in federal court, and no rulings have been issued on the claims challenging New Jersey’s hiring quotas or union labor requirements.
