34:11-56.38 Prohibition against award of contract to non-complying contractors; definition; presumption.
672 words·~3 min read·
/nj/title-34/chapter-11/34-11-56-38·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
14. The public body awarding any contract for public work, or otherwise undertaking any public work, or entering into a lease or agreement to lease pursuant to which public work is to be done, shall first ascertain from the commissioner the list of names of contractors or subcontractors who have failed to pay prevailing wages as determined in section 13 of P.L.1963, c.150 (C.34:11-56.37), and no contract shall be awarded to such contractor or subcontractor, or to any firm, cooperative, corporation, or partnership in which such contractor or subcontractor has an interest until three years have elapsed from the date of listing as determined in section 13 of P.L.1963, c.150 (C.34:11-56.37).
For purposes of this section, “cooperative” shall mean a system of collective ownership of a corporation or other legal entity in which the shareholders or other co-owners each also have a long term proprietary interest or other long term arrangement of control over the operations of the business.
For purposes of this section, “vendor” shall mean any person, firm, corporation, or other entity which provides or offers or proposes to provide goods or services to or perform any contract.
For purposes of this section, "interest" shall mean an interest in the firm, corporation, or partnership bidding on or performing public work, whether having the interest as an owner, partner, officer, manager, employee, agent, vendor, consultant, or representative. The term may also include, but not be limited to, all instances in which the contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has received payments, whether those payments are in the form of cash or any other form of compensation from the firm, corporation, or partnership, or when the contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has entered into any contract or agreement with the firm, corporation, or partnership for services performed or to be performed, for services that have been or will be assigned or subletted, or for the sale, rental, or lease of vehicles, tools, equipment, or supplies during the period from the initiation of the proceedings under section 13 of P.L.1963, c.150 (C.34:11-56.37) against the contractor or subcontractor until three years have elapsed from the date that the contractor or subcontractor has been listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37).
The term "interest" shall not include shares held in a publicly traded corporation if the shares were not received as compensation after the initiation of proceedings under section 13 of P.L.1963, c.150 (C.34:11-56.37) from a firm, corporation, or partnership bidding or performing public work.
A rebuttable presumption that a contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has an interest in another firm, corporation or partnership may arise if the two share any of the following capacities or characteristics:
(1)perform similar work within the same geographical area and within the same monetary range,
(2)occupy the same premises,
(3)have the same telephone number or fax number,
(4)have the same email address or internet website,
(5)employ substantially the same administrative employees,
(6)utilize the same tools and equipment,
(7)employ or engage the services of any listed person or persons involved in the direction or control of the other, or
(8)list substantially the same work experience in order to obtain the requisite pre-qualification rating from the Department of the Treasury, or any other entity, to participate in any public work.
If a rebuttable presumption has arisen that a contractor or subcontractor listed by the commissioner under section 13 of P.L.1963, c.150 (C.34:11-56.37) has an interest in another firm, corporation or partnership, the adversely affected contractor or subcontractor, including the firm, corporation, or partnership, which would by virtue of a finding of "interest" be prevented under this section from being awarded public work, may request a hearing, which shall be conducted in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
L.1963,c.150,s.14; amended 1990, c.27, s.7; 2007, c.67, s.1; 2025, c.180, s.1.