Prevailing Wage Rates for Certain Airport Workers
The New Jersey Healthy Terminals Act (“HTA”), P.L. 2021, c. 68, amends the State Building Contract Services Act and establishes a prevailing wage for certain workers at Newark Liberty International Airport and the Newark Liberty International Airport Train Station. Similar to the prevailing wage for state building contract services, the HTA bases prevailing wage determinations on the wage determinations made by the General Services Administration pursuant to the federal Service Contract Act of 1965 (41 U.S.C. § 351 et seq.).
The law applies only to employers and employees at Newark Liberty International Airport and the Newark Liberty International Airport Train Station. Although sharing the same name, the New York and New Jersey laws are significantly different. A FAQ published by the New York Department of Labor shows many of these differences.
The Department intends to publish a rule proposal in the near future to formally implement aspects of the law. For now, this page may serve as guidance to employers and employees as to the Department’s interpretation of the HTA. Once the Department adopts final rules on the HTA, those rules will have the force and effect of law and will become binding.
Additionally, since the HTA amends the State Building Service Contracts Act, N.J.S.A. 34:11-56.58 et. seq., the Department encourages interested parties to review the rules it has promulgated under that law (N.J.A.C. 12:64-1.1 to 4.6). The Department has also posted a FAQ about the State Building Service Contracts Act.
Interested parties may also contact the Department’s Division of Wage and Hour Compliance by telephone at 609-292-2305 or by email at wage.hour@dol.nj.gov.
The law became effective on April 29, 2021.
The law applies to “covered airport or related location employers,” defined as:
(1) Any person, corporation, limited liability company, or association employing any covered airport or related location worker in an occupation, industry, trade, business or service; or,
(2) Any person who contracts with a person to perform work related to the preparation or delivery of food for consumption on airplanes departing from a covered airport or related location.
The law does not apply to public agencies, defined as:
(1) Any department or agency of the State of New Jersey and its political subdivisions;
(2) New Jersey Transit; and,
(3) The Port Authority of New York and New Jersey
No, nonprofit employers are not exempt from coverage.
No, there is no minimum number of employees required for coverage.
Yes.
Yes.
The law applies to “covered airport or related location workers,” defined as:
(1) Any person employed to perform work at a covered airport or related location, provided at least half of the employee’s time during any workweek is performed at a covered airport and related location; or,
(2) Any person who performs work related to the preparation or delivery of food for consumption on airplanes departing from a covered airport or related location
The law does not apply to workers employed in an executive, administrative, or professional capacity as defined in the Fair Labor Standards Act. In addition, employees of public agencies (as defined in section II above) are exempt.
Yes, so long as they spend at least half of their time during the workweek at Newark Airport or the Train Station.
Yes, so long as they spend at least half of their time during the workweek at Newark Airport or the Train Station.
Yes, so long as they spend at least half of their time during the workweek at Newark Airport or the Train Station.
No. Workers properly classified as independent contractors are not covered.
Yes. Any employee who believes he has been misclassified as an independent contractor may file a complaint with the DOL’s Division of Wage and Hour Compliance. The Division of Wage and Hour Compliance will investigate and make a determination as to whether the individual is covered by the HTA.
The HTA amends the State Building Contract Services Act to establish a prevailing wage for workers covered by the HTA.
The HTA requires that the Commissioner base the prevailing wage determinations on the wage determinations made by the General Services Administration, pursuant to the federal Service Contract Act of 1965 (41 U.S.C. § 351 et seq.) for the appropriate localities and classifications of covered workers. These federal wage determinations are available at the General Services Administration website at https://sam.gov/content/wage-determinations. The most recent wage determination (dated March 15, 2022) for Essex County (the county in which Newark Airport and the Train Station are located) is here.
The HTA further specifies that, as of September 1, 2021, the prevailing wage for covered workers cannot be less than:
(1) any otherwise applicable minimum wage rate established through a policy of the Port Authority;
(2) an amount of wages or supplements equal to the rate for health and welfare for all occupations designated by the Commissioner, based on the determinations made by the U.S. Department of Labor pursuant to the Service Contract Act; and,
(3) paid leave equal to the paid leave requirements designated by the Commissioner, based on the determinations made by the General Services Administration pursuant to the Service Contract Act.
In essence, the HTA requires a minimum wage, a minimum employer contribution for health and welfare, and a minimum amount of paid leave for covered employment.
The SCA wage determination lists minimum hourly rates for hundreds of occupations.
The U.S. Department of Labor’s SCA Directory of Occupations and Occupational Index can provide clarification. In addition, USDOL’s SCA Conformance Guide provides procedures and examples of how employers can attempt to conform their existing employee occupations with those listed in the Directory of Occupations and wage determination.
In furtherance of these established procedures, the Department requests generally that employers make a good-faith effort in examining the Directory of Occupations and Conformance Guide to see first, whether an employee occupation fits exactly within an existing Directory occupation, and second, whether an employee occupation is closely related to an existing Directory occupation.
For the most up-to-date information, please see the wage determination for hourly, weekly, and monthly numbers.
The wage determination indicates that covered workers must receive at least the following.
Vacation Leave:
- 2 weeks paid vacation after 1 year of service;
- 3 weeks paid vacation after 5 years of service;
- 4 weeks paid vacation after 15 years of service; and,
- 5 weeks paid vacation after 25 years of service.
Holidays:
- Covered workers must receive a minimum of 12 holidays per year, including:
- New Year’s Day
- Martin Luther King Jr.’s Birthday
- Washington’s Birthday
- Good Friday
- Memorial Day
- Juneteenth National Independence Day
- Independence Day (July 4th)
- Labor Day
- Columbus Day
- Veterans’ Day
- Thanksgiving Day
- Christmas Day
Note that an employer may substitute any of these holidays for another day off with pay in accordance with a plan communicated to employees (see 29 C.F.R. 4.174).
Covered employers must keep a record of the name, job classification, and actual hourly rate of wages and benefits paid to covered employees.
An employer must retain these records for two years after the date of payment.
A violator of the HTA may be charged with a disorderly persons offense and, upon conviction, could be fined not less than $100 and up to $1,000; or be imprisoned for not less than 10 nor more than 90 days; or be subject to both fine and imprisonment.
The Commissioner may also assess a violator with administrative penalties up to a maximum of $250 for a first violation, and up to a maximum of $500 for each subsequent violation.
If the Commissioner supervises the payment of wages due to workers, contractors, or subcontractors for violations of the HTA, an administrative fee of 10% to 25% will be added.
Wage claims can be filed online or by mail (online is preferred).
If you choose to file your complaint by mail, please send the completed form (Form MW-31B) to:
You can also fax a completed form to (609) 695-1174.