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NJ Wage Violators Beware: State Passes Prevailing Wage Penalty; Considers Criminalizing Violations

December 20, 2002

New Jersey no longer gives prevailing wage violators a slap on the wrist with a nominal penalty. The governor signed this month a labor-sponsored bill that increases fines 10-fold.

"With this new law, we are sending a clear message to employersif you violate the prevailing wage act, you will pay and you will pay a hefty price," said Gov. James McGreevey.

The first violation for contractors is increased from $250 to $2,500. Subsequent violations would go from $500 to $5,000. State Senator Joseph Egan, who is also business manager of New Brunswick Local 456, was a sponsor of the measure, along with Joseph Coniglio, a member of the plumbers and pipefitters union. The prevailing wage law sets pay for work on public projects at a level equivalent to union wages for each profession within the contracting field. In New Jersey, penalties for violations have not been increased in 20 years.

Egan co-sponsored another bill that would criminalize violations of the prevailing wage act. The bill, which passed the state Assembly, is awaiting Senate action. The legislation makes willful violations of the prevailing wage law punishable by fine and imprisonment for the crime of theft. Depending on the degree of violation, the crime could rise to the level of a felony, Egan said.

"A lot of my colleagues were astonished violations could be considered felonies, saying violators shouldnt have to be subject to the same penalty as a person who robbed a 7-11. I disagree," Egan said. "Its a crime as much as anything else thats a felony as far as Im concerned."

Egan said he is hopeful for the bills prospects, despite the Senates 20-20 party split.

IBEW Third District International Representative Wyatt Earp said the legislations opponents are lobbying to prevent the bill from passage.

"The business lobby is strong but they are not strong enough to stop it," Earp said.

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