A union construction worker on a recent project. Passaic County is considering lowering its project labor agreement threshold from $5 million to $3 million.
Passaic County officials are weighing a proposal to lower the threshold for requiring a project labor agreement on county public works projects from $5 million to $3 million, according to NorthJersey.com. The change would expand the number of county construction jobs covered by PLAs, which establish baseline labor conditions for public works projects before bidding begins.
Related guide: Project labor agreements in New Jersey: the law and the 2026 change
Supporters of the change say PLAs deliver skilled labor, predictable project delivery and labor stability that prevents costly strikes or work stoppages. They also point to apprenticeship pathways that move local workers into the building trades and improved scheduling coordination across multiple contractors.
PLAs do not restrict who can bid on covered work: both union and nonunion contractors can compete for the job, with all workers operating under the same set of jobsite rules.
The Passaic County proposal follows a January 2026 amendment to New Jersey state law that eliminated the prior $5 million statutory minimum for PLAs, giving counties and municipalities the authority to set their own thresholds. Several local governments across the state have already acted under the new framework.
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If adopted, Passaic County would join a growing list of New Jersey counties and municipalities expanding PLA use under the revised state framework.
