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A 4237

Dedicates a portion of the state highway system to Trooper James M. MacLarnon

2025 Regular Session Introduced by Dave McDonough

Prevailing-wage contractors must verify new hires with federal E-Verify (for hires after 6/30/2025), plus audits, complaints, and penalties including possible suspension.

SUBSTITUTED BY S8428
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Bill Summary · A 4237

Summary — A4237 (A4237A introduced version)

Short title: (Introduced version) Requires certain prevailing‑wage contractors to verify new hires through federal E‑Verify.
Note: the bill file submitted contains conflicting metadata — the bill header references dedicating a highway to Trooper James M. MacLarnon, but the legislative text provided and the reported A4237A version establish an employment‑eligibility verification requirement. This summary addresses the A4237A legislative text (E‑Verify requirement). The Assembly bill was later substituted by companion S8428 (6/13/2025).

Purpose / Intent

To require contractors who must pay New Jersey prevailing wages on public works projects to verify employment authorization of newly hired employees using the federal E‑Verify system, and to create a state enforcement mechanism (random audits, investigations, penalties) to ensure compliance.

Key provisions

  • Definitions: “Commissioner” = Commissioner of Labor and Workforce Development; “Contractor” = any business entity (including subcontractors) required to pay prevailing wage under the New Jersey Prevailing Wage Act; “E‑Verify program” = the federal DHS/SSA electronic verification system; “Employee” = individual employed by a contractor.
  • Effective date for verification requirement: contractors must verify employment eligibility through E‑Verify for employees hired after June 30, 2025.
  • Enforcement & oversight:
    • Commissioner must develop a statewide random auditing program to inspect contractors for compliance.
    • Commissioner must investigate upon written, signed complaint or when good cause exists and reasonable grounds are found.
    • Administrative procedures: contractors get notice and opportunity for A.P.A. hearing before penalties are assessed.
  • Penalties:
    • Civil penalty for each violation: $500–$1,000.
    • First occurrence: if contractor, after notification, verifies the employees in question within 72 hours, no penalty is assessed.
    • Subsequent occurrences: civil penalty and the commissioner may deny renewal, revoke or suspend (up to 1 year) the contractor’s registration under the Public Works Contractor Registration Act.
    • If contractor had no violations in the previous five years, a subsequent occurrence is treated as a first occurrence.
  • Information & outreach: Department of Labor and Workforce Development must provide information about the statute and federal E‑Verify requirements via a prominent link on its website.
  • Timing: the bill states it takes effect immediately.

Who is affected

  • Directly affected: contractors (including subcontractors and lower‑tier subcontractors) required to pay prevailing wages under NJ law — primarily firms performing public works projects subject to the Prevailing Wage Act.
  • Indirectly affected: employees hired by those contractors after June 30, 2025; government procurement offices and public works project administrators; the Department of Labor & Workforce Development (responsible for audits, investigations, and outreach).

Procedural status (selected)

  • Introduced in Assembly: 05/02/2024 (referred to Assembly Labor Committee).
  • Print A4237A prepared and amended (05/28/2025).
  • Reported and ordered to third reading / Rules calendar: 06/13/2025.
  • Substituted by companion bill S8428: 06/13/2025.

Potential impacts / considerations

  • Administrative burden on covered contractors to enroll and use E‑Verify for qualifying hires; potential for increased compliance costs.
  • Risk of monetary penalties and, for repeat violations, suspension or loss of ability to register for public works contracts — which could affect contractors’ capacity to bid on or perform public projects.
  • No explicit appropriation in the bill for enforcement; implementation will require department resources to run audits/investigations and provide public guidance.
  • The obligation applies only to contractors bound by the State Prevailing Wage Act; other employers are not covered by this bill as written.

Compiled from official sources — confirm details with the bill’s official record.

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