On September 9, 2026, Governor Sherill signed into law changes to the Public Works Contractor Registration Act (the “Act”), which sets heightened minimum qualifications for journeymen employed as craft workers on public work projects. The law does not take effect immediately. Instead, these requirements will become effective on September 9, 2027.
What Does the New Law Require?
Under the amended law, a contractor’s (or subcontractor’s) registration application will have to include a certification, in a form supplied by the New Jersey Department of Labor, establishing that each journeyman performing on a public work project meets one of the two permitted qualification requirements.
- Completion of a Qualified Registered Apprenticeship Program
A journeyman may meet the qualification standards by graduating from a registered apprenticeship program with Standards of Apprenticeship meeting the federal requirements under 29 C.F.R. § 29.5 for the applicable craft or trade, provided the worker is actively employed in that craft or trade. Earlier versions of the bill would have required the apprenticeship program to be sponsored by a labor union or jointly sponsored with a labor union and employer association, but the law does not include that requirement. Instead, a self-sponsored apprenticeship program can meet the requirements of the law so long as it meets the federal Standards of Apprenticeship. Of course, even with this additional flexibility, for many employers and depending on the specific trade, this option of meeting the qualification requirements may not be a practical option.
- Four Years of Documented Experience
Where a registered apprenticeship program is not an option or a contractor wants to go in a different direction, a journeyman can meet the qualification standards by demonstrating four years of documented work as a craft worker. The law specifically contemplates verification of four years of work through:
- Pay records; or
- Sworn statements from the craft worker and their employer(s) during the four years.
This option may be particularly significant for non-union contractors the workforce of which have developed through on-the-job training and experience rather than from formal apprenticeship programs.
Exemption for Certain Unionized Workforces
While all non-union contractors must comply with this law’s requirements, the law carves out two exemptions from the training requirements.
- Prevailing Building Trade Unions
Notably, not subject to the requirements of this law are workers who are members of a labor union and employed by a signatory to a collective bargaining agreement (“CBA”) that is or was the basis for a determination by the Commissioner of Labor of the prevailing wage, otherwise known as a prevailing building trade union.
- Other Union Membership
The law also exempts craft workers employed by a signatory to a CBA recognized under the National Labor Relations Act, where the CBA provides for participation in one or more jointly administered labor-management trust funds, including apprenticeship, training, pension, health, or other employee benefit plans. This exemption applies regardless of whether the agreement was used to establish the prevailing wage rate for a specific trade.
For contractors with unionized operations, this potential exemption warrants close review of existing CBAs, including benefits and training arrangements.
What Does This Change Mean?
For contractors that have been meeting the requirements of the 2019 changes to the Act by participating in registered apprenticeship programs, these changes may not mean much. However, for contractors that have been paying an intermediary to meet registered apprenticeship obligations, or for non-union contractors new to public work in New Jersey, this law has created a barrier to entry for some craftworkers to perform work on public works projects.
Contractors will need to closely monitor their workforce and keep track of which employees may be working on public works projects, which have graduated from qualifying apprenticeship programs, how long each worker has worked and in which trades they have performed work (especially for those new to a company but who have significant prior experience), and whether they have the appropriate documentation that would satisfy the Commission of Labor that the requirements have been met.
For contractors that have just started performing public work, additional diligence may be required to ensure the documentation they have substantiates the individual worker performing the appropriate craft labor. Non-union contractors or union contractors that do not meet the exemption requirements may also have to make the unfortunate decision to keep inexperienced workers off of public work projects until they meet the qualification requirements.
All contractors should also consider whether their subcontractor agreements or any other prequalification procedures should be amended to address the change to the law.
Although the law does not become effective until September 9, 2027, contractors and subcontractors should use the next year to take appropriate steps to ensure compliance. Starting early will help ensure that, when renewal time comes around, contractors are prepared to meet the Department’s new requirements.
We will continue to monitor and provide relevant updates, including any guidance provided by the Department of Labor.
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