Prevailing wage is the standardized regional wage scale that all contractors must use when working on government contracts. Currently, violations are handled administratively by the state Department of Labor (DOL) and are punished with fines levied on the offending contractor. Under the proposed legislation, DOL would forward cases of prevailing wage violations it believes are intentional to the Attorney General for criminal investigation.

Contractors convicted of knowingly paying a lower wage on a government contract would be guilty of a third-degree crime if the total amount of the contract is between $2,500 and $25,000. A third-degree crime is punishable by three to five years in prison and fines of up to $15,000. If the total contract amount exceeds $25,000, the offender would be guilty of a second-degree crime, punishable by up to ten years in prison and fines of up to $150,000. Even violations involving contracts of less than $2,500 could be punished with up to 18 months in prison and a fine of up to $10,000.

NJBIA has always supported enforcing New Jersey's prevailing wage laws, but these violations do not warrant criminal penalties. They involve underpayments that can be easily rectified by paying workers the extra wages they are due. Certainly, the penalties contained in this bill are excessive and totally out of proportion to the offense. Furthermore, the $25,000 threshold is arbitrary and unfair. A single, relatively small violation on a large contract would force a stronger penalty than repeated violations committed as part of a smaller contract.

For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

NJBIA Speaks Out Against Diversion Of Workplace
Development Funds
Every dollar of funding dedicated to employee training should be used for valuable job training and not diverted for unrelated budgetary purposes, NJBIA Vice President Jeff Stoller told the Senate Labor Committee on October 31. The funding, established in 1992, comes from a dedicated portion of both employee and employer Unemployment Insurance (UI) taxes and is supposed to be used to fund the Workforce Development Partnership (WDP) program. Every year, however, millions of dollars never make it into the program. In this year's budget, Stoller told the committee, only $25 million is budgeted for training, while the dedicated taxes will bring in approximately $60 million.

Since 1992, employers and employees have voluntarily paid the state tens of millions of dollars that would otherwise be placed in the UI fund. They have done so with the understanding that these funds would be used to upgrade workers' skills-helping them avoid unemployment or shortening the time they spend collecting UI before finding a new full-time job. The program has been very successful in helping employees retain their jobs or find new ones. Diverting this funding is unfair to the working people and business owners who pay for worker training and is bad public policy. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

Living Wage Bill Would Hurt NJ's Business Climate,
BIA Tells Committee
So-called "living wage" mandates would damage New Jersey's business climate and hurt the very people such mandates are supposed to help, NJBIA told the Assembly Labor Committee on October 24. The committee held a hearing on legislation-A-1121 (Quigley) and A-212 (Friscia/Guear)-that would require companies receiving any type of state, county or local government assistance to pay each employee a minimum of $8 per hour, paid vacation days and health benefits. The salary level also would go up every year in proportion to increases in the cost of living. New Jersey would be the only state in the country to mandate a living wage if the bill is enacted into law.

Companies that fail to meet the living wage mandate would be ineligible for government contracts as well as any type of incentives such as low interest loans, targeted tax breaks or grants. The legislation would penalize companies that accept even small tax credits for hiring urban youth, cleaning up contaminated property or training workers.

The bill's living wage rate was set arbitrarily by proponents who believe it is the minimum needed by workers to afford a home and living expenses. All employees-regardless of skill level, experience or education-would be paid at least this amount. In response, employers would lay off low-skilled employees they can no longer afford.

The bill would also cost taxpayers more. The new requirements on vendors would force all levels of government to accept higher bids on many contracts that are funded by taxpayers. The New Jersey League of Municipalities and the New Jersey School Boards Association joined NJBIA in opposing the bill.

For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

Assembly Passes Personnel Records Access Bill
Legislation that would provide employees greater access to their personnel files was approved by the Assembly October 17. The bill, A-2058 (Gusciora), would require employers to permit employees or their attorneys to review the employee's personnel file and to obtain copies of information from the files upon request. The bill also would allow employees to add written information to their file if they feel something is inaccurate or misleading.

NJBIA has been working with the bill's sponsor to obtain important amendments to protect employer investigations into employee misconduct. While the bill contains provisions designed to protect the integrity of criminal investigations, inquiries conducted into noncriminal matters, such as sexual harassment, are not yet protected from disclosure.

As currently written, statements by witnesses, coworkers or clients about the noncriminal misconduct of an employee would have to be made available to the employee upon request. This would discourage workers from cooperating with investigations into misconduct by their colleagues because confidentiality cannot be assured. The sponsor, Assemblyman Gusciora, is working with NJBIA to correct the problem. For more information, contact Jeff Stoller at ext. 209 or jeffstoller@njbia.org.

Brownfields Bill Clears Committee
The Assembly Commerce and Economic Development Committee on November 7 released legislation requiring the New Jersey Department of Environmental Protection (DEP) to create an inventory of New Jersey's brownfields.

The bill, A-2887 (Chivukula, Egan), would create an economic development tool that would allow government and economic development entities to market brownfields properties to prospective businesses. NJBIA supports the bill and believes it is a proactive step to encourage economic development in already developed areas. For more information, contact Jim Sinclair at ext. 236 or jsinclair@njbia.org.

Teacher Technology Certification Bill Advances
Legislation that would require New Jersey teachers to be certified in technology training was released by the Assembly Education Committee on October 24. The bill would require teachers to undergo technology training so they can better incorporate an understanding of technology in their teaching. NJBIA is a strong supporter of the bill.

The bill, A-1140 (Wolfe, Holzapfel, Previte), is a recommendation of the Education Technology Task Force, which was formed by the Commission on Business Efficiency of the Public Schools. The recommendation is included in a 1996 report.

Technology education is critical to addressing one of employers' central concerns-the lack of technology and problem-solving skills in entry-level workers. Teachers need to understand the potential of technology to support curriculum goals, and need to become sophisticated users of that technology.

Quote of the Month
"Every dollar of the Workplace Development Partnership should be used to train and retrain the workers of this state."

Don't Miss NJBIA's December 4 Public Policy Forum
Charting a New Course
A Pro-Growth Agenda for 2003
Keeping the business climate friendly
Fashioning a pro-growth agenda
The legislative outlook-what comes next?

On Wednesday, December 4, New Jersey's legislative leaders, successful business owners, brightest political analysts and top economists will gather at the Woodbridge Sheraton to give you their take on the key issues facing New Jersey employers. As the state struggles with a weak economy, what do we need to do to get our economy back on track? Hear what New Jersey's best and brightest think should be done to help businesses grow at NJBIA's Public Policy Forum.

Political leaders John Bennett, Dick Codey, and Paul DiGaetano will share their ideas for the upcoming legislative session. The panel will be moderated by CN8 Political Reporter Laura Jones.

How have our Governor and legislative leaders fared in 2002? Four of New Jersey's top political analysts will present a mid-term assessment at a panel discussion moderated by New Jersey Network Political Correspondent Michael Aron. Panelists include Dale Florio of Princeton Public Affairs Group; Harold Hodes of Hodes Shaw Bodman Gluck; Herb Jackson, senior State House reporter and columnist for the Bergen Record; and David Rebovich, associate professor at Rider University.

NJBIA President Joseph Gonzalez will present the findings of NJBIA's 2003 Business Outlook Survey and Executive Vice President Philip Kirschner will present the Association's pro-growth legislative agenda.

A panel of New Jersey economic experts will present their views on the state's business climate. The panelist are Thomas A Bracken, president and CEO, Sun National Bank; Lisa Hirsh, president and CEO, Accurate Box Company, Inc.; David Houston, president, Colliers Houston & Company New Jersey; and Dr. James Hughes, dean, the Edward J. Bloustein School of Planning and Public Policy at Rutgers University. The panel will be moderated by New Jersey Network Business Correspondent Rich Young.

NJBIA will also recognize the accomplishments of state Senator Robert Littell, who will receive the Paul L. Troast Award for his outstanding contributions to the state and its business community; and Maurice Coffee, vice president of government relations, Virtua Health, for his outstanding volunteer contributions to NJBIA's activities.

US Senator-elect Frank Lautenberg has been invited to deliver the keynote luncheon address.

Register Now for the NJBIA Public Policy Forum!From 8:15 a.m. to 2:00 p.m., Wednesday, December 4, the Sheraton at Woodbridge Place, Iselin. Cost to attend is $160 per person for members and $220 for nonmembers. To register, contact Stacy Wichner at NJBIA, 609-393-7707, ext. 213, or swichner@njbia.org. For sponsorship information, contact Sherry Esteves at ext. 219 or sesteves@njbia.org.

New Jersey Business & Industry Association presents:
NJDEP Commissioner Bradley M. Campbell And His
Environmental Agenda
Big Changes Are Happening at New Jersey's Department of Environmental Protection

Get the Inside Scoop on December 13

The New Jersey Business & Industry Association is hosting a special briefing breakfast with state Environmental Commissioner Bradley M. Campbell on Friday, December 13.

Don't miss this great opportunity to learn what the New Jersey Department of Environmental Protection (DEP) has in store for your business. Find out how permits will be issued and how the DEP will enforce environmental laws.

The breakfast with Commissioner Campbell will be held from 7:30 a.m. to 9:45 a.m (the program will start at 8:15 a.m.) at the Clarion Hotel and Towers in Edison.

Campbell will present his environmental action plan for the coming year and summarize the environmental accomplishments of the McGreevey Administration in its first year in office. He will also take questions from the audience.

The cost to attend is $49 per person for NJBIA members and $89 for nonmembers. Breakfast is included.

Seating is limited and preregistration is a must! Register today. Contact Lisa Figatner at 609-393-7707, ext. 239, or lfigatner@njbia.org.

You can also get registration information Here

Fox Says More Transportation Funds Needed
New Jersey Department of Transportation (DOT) Commissioner Jamie Fox said his main goals for the coming years are to fix the E-Z Pass toll collection system, reform the Division of Motor Vehicles, and develop a plan to pay for the state's future transportation needs. Fox spoke to about 150 NJBIA members at an October 4 briefing on transportation projects.

While New Jersey has $3.5 billion set aside for transportation construction projects, Fox said the state needs about $5 billion to meet its most immediate transportation construction demands now, as well as additional money to upgrade and expand park-and-ride facilities and purchase new commuter trains. Fox called for a greater share of federal funding for New Jersey as well as a more reliable source of state funding for transportation projects.

Griffith Electric: Wired into Trenton Since 1938
Griffith Electric Supply Co., Inc. has been part of Trenton since 1938 and in more ways than one.

Griffith today is located right across the street from where Bill and Meta Griffith founded the company in 1938. Instead of moving out to the suburbs as the company grew, it purchased more building lots in the city to fulfill its expansion plans.

As one of the premier electrical supply companies in the area, Griffith Electric has provided electrical supplies for such new Trenton landmarks as the Waterfront Park minor league baseball stadium and the Sovereign Bank Arena.

"Our customers range from large contractors to one-man companies that operate out of their pick-up trucks," Chief Operating Officer Bill Goodwin told Trenton-area Assemblyman Reed Gusciora during a recent site visit. "We supply material to state and county agencies, schools, industrial plants, property managers and utilities."

Goodwin and Margaret Kline, Griffith's vice president for administration, gave Assemblyman Gusciora a tour of their Trenton operation last month as part of NJBIA's site visit program. The program helps legislators better understand the issues impacting businesses in their districts.

The Corporation Business Tax (CBT) increase enacted in July and rising healthcare costs make it difficult for Griffith, like many businesses, to turn a profit and invest in its operation, Goodwin said. Growing expenses like taxes and health benefits leave less money to spend on new employees or increased inventoris that could help the business grow.

Of particular concern to Griffith is the new law providing for project labor agreements. The law allows local government entities to require contractors to use only union labor on building construction contracts.

The company is afraid project labor agreements could force governments to look out-of-state to find the contractors they need, and those out-of-state contractors would be more likely to use out-of-state suppliers. Griffith is well established in New Jersey, but would have to compete for new business with out-of-state contractors who may not be interested in changing suppliers.

Such challenges are nothing new to Griffith, which has weathered its share of tough times. Griffith thrived along with Trenton during the city's industrial heyday; but in the 1970s, businesses began moving out of state and the city began an economic decline.

When Meta Griffith became the company's president after her husband died in 1971, she faced a crucial decision-either sell Griffith Electric or stick with the city that had helped her business expand for the previous 33 years.

Meta made a commitment to the city. Today, she is one of the capital's leading business owners. At age 93, she still works full time and is involved in all major business decisions. She has built Griffith Electric to a 42-employee business with $15 million in annual sales.

Griffith Electric can feel somewhat vindicated by her decision. Today the city is making a comeback with the construction of new sports arenas, restaurants, a hotel and an influx of other businesses.

And Griffith Electric is there to be a part of it.

WEDNESDAY, DECEMBER 4
NJBIA Public Policy Forum-
Charting a New Course,
A Pro-Growth Agenda for 2003
In keeping with tradition, this seminar will present our Business Outlook Survey results and feature a lively discussion between Republican and Democratic leaders on pressing business issues. The event will be held at the Sheraton at Woodbridge Place in Iselin from 8:00 a.m. to 2:00 p.m. and includes breakfast and lunch. Cost to attend is $160 per person for NJBIA members and $220 for nonmembers. For more information, call Stacy Wichner at 609-393-7707, ext. 213. Sponsorships are still available; for information, call Sherry Esteves at ext. 219. Register

FRIDAY, DECEMBER 13
Briefing Breakfast with NJDEP Commissioner Bradley Campbell
NJ Department of Environmental Protection Commissioner Brad Campbell will lay out his environmental action plan for next year and summarize the McGreevey Administration's accomplishments during its first year in office. This breakfast will give NJBIA members an opportunity to discuss important environmental policies and procedures with the Administration official responsible for the enforcement of environmental regulations. The event will be held at the Clarion Hotel and Towers in Edison from 7:30 a.m. to 9:45 a.m. The cost is $49 per person for NJBIA members and $89 for nonmembers. For more information, contact Lisa Figatner at 609-393-7707, ext. 239. Register

FRIDAY, JANUARY 17
Building the Schools: Update on the State School
Construction Program
Update on the State School Construction Program Governor McGreevey has made jump-starting the $12 billion school construction program a top priority. He's formed a new agency, The New Jersey Schools Corporation, to take charge of the program. Get up-to-the-minute information on the program from the new top administrators, meet project managers responsible for construction, and learn where the work is. The event will be held at the Sheraton at Woodbridge Place in Iselin from 8:00 a.m. to 12:00 p.m. Cost to attend is $99 per person for NJBIA members and $139 for nonmembers. For more information, call Lisa Figatner at 609-393-7707, ext. 239. Register

NJBIA Compensation Report (2002-2003)
As a New Jersey employer, you know how hard it is to find the right worker for the right job. Once you've found the right person, you still have a very important issue to resolve. What should you pay them? This is precisely why you need NJBIA's 2002-2003 Compensation Report. Compiled from 314 companies reporting data on 28,000 employees, our Report is the state's most complete guide to the salaries and wages employers in your industry and your region are paying their employees. Find out what the competition is paying, what they are budgeting for salary increases, and what lump-sum bonuses they are offering. The Compensation Report contains information on over 200 job classifications within 12 job families. It also categorizes breakdowns by five geographic regions within the state for most jobs listings, along with statewide totals. Salary data for each position including the high, the low, the weighted average, the middle 50 percent range and the weighted average for the middle 50 percent range also is included. Prices: NJBIA members $95 (plus 6% NJ sales tax); nonmembers, $200 (plus 6% NJ sales tax).

Rapid Finder Payroll Tax Deduction Tables (January 2003)
NJBIA is pleased to offer the January 2003 edition of the NJBIA Rapid Finder Payroll Tax Deduction Tables. The Rapid Finder will be available for distribution in mid-December. This is a valuable publication for companies that maintain their own payroll and a handy reference for all payroll managers. The Rapid Finder lists and combines New Jersey and federal tax deductions for employers with weekly pay periods. Federal income tax withholding will be changed for 2003 reflecting reduced federal tax rates. In addition, federal personal exemptions, standard deductions and taxable wage brackets will be adjusted for inflation. This all-in-one guide calculates tax deductions for five separate tax tables: Federal Social Security Tax, Federal Medicare Tax, New Jersey Gross Income Tax, Unemployment Insurance, Workforce Development Partnership Fund and Temporary Disability Insurance Taxes, and Federal Personal Income Tax. Prices: NJBIA members $25, nonmembers $35 (6% NJ sales tax must be included, unless tax exempt).

To order these and other NJBIA publications, call Christine Lopez at 609-393-7707, ext. 224.