Last August, the New Jersey Department of Labor (NJ DOL) released the New Jersey Wage Hub. According to the NJ DOL, the Hub is designed to be an easy-to-use online tool to help public works employers report certified payrolls. By reporting through the Hub, the NJ DOL intends to help public works employers comply with the Prevailing Wage Act and Dianne B. Allen Equal Pay Act and hold bad actors accountable for their wrongdoings.

In January 2024, the NJ DOL released a statement focused on their continued agency improvements and protections in 2024, one of which is the Hub. The statement was intended to inform any contractor who is performing public work that they will be required to report their certified payroll records directly to the NJ DOL through the Hub starting August 15, 2024.

In addition to the Hub, the NJ DOL also announced that starting August 15, 2024, Public Works Contractor Registration applications will now only be accepted online.

What do contractors need to know?

The most important thing for contractors to know is that it is their responsibility to ensure their certified payrolls are submitted properly every week. All submissions of certified payrolls to the Hub should not be redacted. The Hub automatically redacts all sensitive and confidential information if there is any public request for certified payroll submissions.

Contractors must also submit their certified payrolls to the Hub, even if the public body they are working with is not yet enrolled in the Hub. Meaning, if the public body is not using the Hub, a contractor can invite them to register with their Employer Access (TWES)-enabled MyNewJersey account. If the public body is not using the Hub and does not register for the Hub, contractors must submit their certified payrolls (that they have already submitted to the public body) via fax or email. If the public body already uses the Hub, there is no reason to fax or submit the form. If a public body that a contractor is working with has already registered for the Hub, the contractor should register before August 15, 2024, and start using the Hub, too, before it becomes mandatory.

Contractors also need to know that this change in reporting is not just for contracts. Contractors must also submit certified payrolls through the Hub when dealing with purchase orders. If a contractor deals with multiple purchase orders under the same agreement and gets paid for all of them on the same check, the POs can be viewed together in the certified payroll database. Additionally, if the payrolls look like the work is being purposefully separated to evade the prevailing wage applicability, they would also be viewed collectively as parts of a single project under the certified payroll database.

While it sounds like a big change, the intention is to streamline the submission process for contractors. The Hub is easy to use and allows contractors to duplicate and edit certified payrolls from week to week and receive automatic notices of submission. Additionally, the secure online account enables contractors to see all their previously submitted payroll records in one place.

On the other hand, this change will give NJ DOL access to records they previously did not have access to. This is because, prior to the mandated use of the Hub, certified payrolls were only required to be submitted directly to the public body for whom the work was being performed. Contractors should remain vigilant and meticulous when submitting their certified payrolls after transitioning to the Hub. It is recommended that records are double or even triple-checked before being submitted online to avoid any potential audits that could become more frequent starting August 15, 2024.

Conclusion

New Jersey is not the first state, and likely will not be the last, to switch to online reporting. Other states, including Pennsylvania and New York, have also implemented online filing systems for certain projects to ensure contractors comply with state labor programs. While it does increase the New Jersey government’s ability to regulate contractors, in the long run, it will be easier to use and beneficial for contractors who follow proper certified payroll practices.