New Jersey Law Sets Penalties for Non-Compliance in Public Work Contracts

New Jersey Senate Bill 1403 has recently been passed in an effort to strengthen compliance requirements for employers and contractors working for a public body.

Under this law, when requested by the Commissioner of Labor and Workforce Development, employers or contractors must provide all relevant records such as books, registers, payrolls, and copies to both the Commissioner and the contracting public entity within ten days.

If they fail to comply, the Commissioner may order the public body’s fiscal officer to withhold up to twenty-five percent of the contract payment, capped at one hundred thousand dollars, until the records are submitted. A “public body” includes the State, its subdivisions, authorities, and agencies, while “work for a public body” covers construction, repair, maintenance, and similar activities funded or supported by public resources.

The bill was signed by the Governor on October 20, 2025, and will take effect 365 days later, on October 20, 2026, although the Commissioner may take necessary administrative steps beforehand to ensure implementation.

Get HR Legal Updates

Stay informed and compliant with the latest HR legal updates.

[hubspot type="form" portal="21102446" id="8fe8c1ff-7144-45ee-b28b-8dc0da98c1e8"]