Senator Madden’s bill expanding definition of custom fabrication under the Prevailing Wage Act clears Senate

A bill sponsored by Senator Madden to revise part of the New Jersey Prevailing Wage Act to include certain types of fabrications was approved by the full Senate during the voting session on December 17.

In its current form, the Prevailing Wage Act requires individuals employed on public works projects receive certain wages and benefits, the rates of which are established by the Department of Labor and Workforce Development.

The bill (S-2454) expands the definition of “custom fabrication” in the Prevailing Wage Act to include components or structures pre-built to specifications for a particular public works project. It would also be expanded to apply to other materials finished into components without further modification for use in a project or type or classification of a project.

“Employers who are given government contracts are under a special obligation to make sure that their employees are taken care of,” said Senator Madden. “It’s time to close the loophole that has allowed some employers to skirt by this obligation.”

Off-site manufacturing, assembling, and furnishing of material or equipment is not covered under current law, unless they fall under the definition of “custom fabrication.” Currently, “custom fabrication” is defined as “the fabrication of plumbing, heating, cooling, ventilation or exhaust duct systems, and mechanical insulation.”

In government contracting, prevailing wage is defined as the hourly wage and standard benefits paid to the majority of workers, laborers, and mechanics in a particular area.

The Senate approved the measure by a vote of 32-2.