PLAs allow public officials and construction partners to review plans for a major civic infrastructure project before ground is broken.
A federal judge issued a New Jersey PLA ruling on Sept. 23 that keeps the state’s project labor agreement rules in force on public construction, Bloomberg Law reported.
U.S. District Judge Zahid N. Quraishi found that the state’s bidding process likely does not violate contractors’ First Amendment rights. The decision came in a lawsuit a nonunion paving contractor filed against the New Jersey Turnpike Authority, Ocean County and Evesham Township.
What the judge found
Earle Asphalt Co. of Wall argued that requiring project labor agreements forces contractors to support and associate with unions. Quraishi disagreed.
The state law “says nothing about union benefit programs,” Quraishi said. He also found that contractors choose for themselves whether to bid on projects the law covers. Because bidding is voluntary, he said, any speech element is not compelled.
How the case began
Earle filed suit in federal court on April 30, Bloomberg Law reported at the time. The company pointed to several public jobs it lost or skipped because the owners required a PLA.
Why the ruling matters for public construction
Project labor agreements are pre-hire agreements that set wages, work rules and dispute resolution for every trade on a job before work starts. Public owners use them to keep large projects on schedule and to prevent labor disruptions.
New Jersey law lets public entities require PLAs on public works projects. The ruling means those requirements stay in effect while the case moves forward.
Frequently Asked Questions
What did the New Jersey PLA ruling decide?
A federal judge found that New Jersey’s project labor agreement bidding rules likely do not violate contractors’ First Amendment rights.
What is a project labor agreement?
A PLA is a pre-hire collective bargaining agreement for a single construction project. It sets the terms for wages, hours, work rules and how disputes get resolved.
Can nonunion contractors bid on PLA projects?
Yes. Any qualified contractor can bid. The contractor that wins the work agrees to follow the terms of the PLA on that project.
