New Project Labor Agreement Law Gives NJ Construction Workers Better Benefits

The Union County Board of Commissioners recently approved lowering the threshold for project labor agreement requirements from $5 million to $3 million in response to a state law mandate established earlier in 2026.

Union County Board of Commissioners Chairman Joseph Bodek said in a press release: "This change expands opportunities for our local skilled trades, strengthens labor standards and ensures more county projects are built by the highly trained workforce that residents expect and deserve."

A lower threshold will give union workers doing public construction projects parameters for completing them on time and with high standards of safety and quality, according to county officials. Lowering the threshold for project labor agreements will ensure the benefits to laborers and the county are extended to more county projects, according to Union County Counsel Bruce Bergen.

Project labor agreements are pre-hire collective bargaining agreements between project owners and labor unions that set forth employment terms and conditions for construction projects such as wages and benefits. They help maintain job stability, project schedules, and identify appropriate workers for a project.

Under the new state law, according to NJSA 52:38-1 et seq., project labor agreements promote harmonious and productive work environments for public works projects and guarantee that projects are carried out in an orderly and timely manner without strikes, lockouts, or slowdowns.

The county uses project labor agreements on all projects to which state law applies. Bergen noted that project labor agreements will not affect the bidding process for county projects and likely will not affect state aid or money the county receives from capital bond ordinances.

The agreements allow public agencies to predict actual project costs more accurately and aim to have lower costs for repairs and maintenance over the lifetime of completed projects.

William Mullen, president of the New Jersey Building and Construction Trades Council, stated: "Lowering the project labor agreement threshold to $3 million is a smart investment in Union County's workforce and taxpayers, and we commend the commissioners for their leadership and commitment to delivering high-quality public infrastructure projects for residents."

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FAQ

Q: What is a project labor agreement?
A: A project labor agreement is a pre-hire collective bargaining agreement between project owners and labor unions that sets forth employment terms and conditions for construction projects, including wages and benefits. They help maintain job stability, project schedules, and identify appropriate workers for projects.

Q: What did Union County's Board of Commissioners recently change?
A: The Board of Commissioners lowered the threshold for project labor agreement requirements from $5 million to $3 million. This means more county construction projects now require project labor agreements.

Q: Why did the county make this change?
A: The change was made in response to a state law mandate established earlier in 2026 under NJSA 52:38-1 et seq.

Q: How does this benefit workers and the county?
A: Project labor agreements promote harmonious and productive work environments, guarantee orderly and timely project completion without strikes or slowdowns, and allow public agencies to predict actual project costs more accurately. They also aim to lower costs for repairs and maintenance over the lifetime of completed projects.

Q: Will this affect how the county bids on projects?
A: No, according to Union County Counsel Bruce Bergen, project labor agreements will not affect the county project bidding process.

Q: Will this affect state aid to Union County?
A: No, the agreements are unlikely to affect state aid or money the county receives from capital bond ordinances.

Q: What did labor leadership say about this change?
A: William Mullen, president of the New Jersey Building and Construction Trades Council, called it "a smart investment in Union County's workforce and taxpayers" and commended the commissioners for their leadership.

Q: Where can I find more information about Union County policies?
A: Union County Life covers county government actions, policies, and announcements. Subscribe to the Union County newsletter or visit unioncountylife.com for updates.