Project labor agreements set one standard for every worker on the job.
Authorized Since 2002. Expanded in 2021. Opened to Every Local Project in 2026.
Project labor agreements in New Jersey rest on one of the clearest statutory foundations in the country. Since 2002, state law has authorized public entities to use project labor agreements on public works, and two amendments, in 2021 and January 2026, have widened that authority. Public officials, contractors and taxpayers evaluating a PLA in New Jersey can start with the statute itself, N.J.S.A. 52:38-1 and following, which spells out who may use a PLA, what it must contain and what findings support it.
The 2002 Law
New Jersey enacted its PLA statute in 2002 with the stated goals of promoting labor stability, efficiency and workforce development on public works. The law allows a public entity to include a PLA on a project-by-project basis when it determines, considering the project’s size, complexity and cost, that the agreement will advance its interests in cost, efficiency, quality, timeliness, a skilled labor force and safety. That determination is the public record that supports the decision, and it is the first thing a local official should draft. The statute defines a public entity broadly: the state, its agencies and authorities, counties, municipalities, school districts and fire districts all qualify.
What a New Jersey PLA Must Contain
N.J.S.A. 52:38-5 sets the required terms. Every PLA on a covered public works project must:
- Advance the public entity’s interests in cost, efficiency, quality, timeliness, a skilled labor force and safety
- Guarantee against strikes, lockouts and similar actions
- Provide effective, immediate and mutually binding procedures for resolving jurisdictional and labor disputes
- Bind every contractor and subcontractor through the bid specifications
- Require that each contractor and subcontractor have a registered apprenticeship program
The statute also requires conformity with set-aside goals for women and minority-owned businesses. It allows agreements to let contractors retain a percentage of their current workforce, and it makes clear that the successful bidder need not be a party to any labor agreement beyond the project itself. Non-union contractors bid and work on New Jersey PLA projects under those provisions.
The 2021 Expansion
In April 2021 the Legislature passed P.L. 2021, c. 69, which broadened the definition of public works project to include categories of construction that had not previously been covered, opening PLAs to more of the state’s infrastructure program. The 2021 law also tightened the definition of a registered apprenticeship program and added provisions aimed at expanding opportunity for workers from disadvantaged communities.
The 2026 Amendment
On Jan. 20, 2026, the governor signed legislation removing the $5 million threshold for local public entities. Municipalities, counties, school districts and fire districts may now require a PLA on public works projects regardless of cost, provided the project is subject to the state’s prevailing wage law and the entity makes the findings the statute requires. The original threshold reserved PLAs for large projects. The amendment brings school additions, municipal buildings and smaller infrastructure work within reach of the same tool. For a school board planning a $3 million addition or a township replacing a firehouse, the choice is now theirs to make.
PLAs at Work Across the State
New Jersey public owners have used PLAs on schools, transit, water systems and public buildings for more than two decades, and the state’s building trades, including the 42,000 union carpenters of the Eastern Atlantic States Regional Council of Carpenters, supply the trained workforce those agreements guarantee. The research on outcomes is consistent: PLAs increase competition and do PLAs increase costs has a settled answer of no. The ICERES research review compiles the peer-reviewed literature. For local officials, the statute supplies the framework, the findings supply the record and the workforce supplies the result. Contractors that bid public work in the state already know the drill: prevailing wage, certified payroll and, on covered projects, a PLA with the same core terms every time.
Frequently Asked Questions
Are project labor agreements legal in New Jersey?
Yes. N.J.S.A. 52:38-1 and following has authorized PLAs on public works since 2002.
Which public entities can use a PLA in New Jersey?
The state, its agencies and authorities, counties, municipalities, school districts and fire districts.
Is there a project cost threshold?
For local entities, no longer. A January 2026 amendment removed the $5 million threshold for municipalities, counties, school districts and fire districts.
Must a New Jersey PLA include apprenticeship?
Yes. Every contractor and subcontractor on a covered project must have a registered apprenticeship program.
Can non-union contractors work on New Jersey PLA projects?
Yes. The statute states the successful bidder need not be party to any labor agreement beyond the project and allows contractors to retain a percentage of their existing workforce.
What findings must a public entity make?
That the PLA, considering the project’s size, complexity and cost, will promote labor stability and advance the entity’s interests in cost, efficiency, quality, timeliness, a skilled labor force and safety.
Do New Jersey PLAs prohibit strikes?
Yes. Guarantees against strikes, lockouts and similar actions are required by statute.
What did the 2021 amendment do?
It broadened the definition of public works project so more categories of construction could be covered by a PLA.
Do PLAs raise costs in New Jersey?
No. Peer-reviewed research on more than 1,000 public projects finds no statistically significant cost increase.
