New Jersey Subcontractors Association Achieves Major Success In State Capital.

On the final day of legislative action for the 212th Legislature, NJSA successfully managed to get an important change to retainage law through the process.  Senate Bill 317, sponsored by Senator Richard Codey and Assembly Bill 3990, sponsored by Assembly Jerry Green, will allow the release of retainage for a subcontractors portion of work, when the subcontractors work is completed.  The bill also provides that interest on retainage shall accrue to the contractor rather than the public owner.   The bill applies to Local Public Contracts law and Public Schools Contracts law.  The legislation faced significant opposition throughout, though NJSA, NECA and several other industry groups  successfully pushed the bill to final approval by both houses of the legislature.  Governor Christie now has seven days to consider signing the bill.  NJSA representatives continue to work with the Governor's office to hopefully have the bill signed into law.

Employee Rights Poster To Be Required Soon

As of April 30, 2012, most private sector employers will be required to post a notice advising employees of their rights under the National Labor Relations Act. (The original effective date was postponed.) The notice should be posted in a conspicuous place, where other notifications of workplace rights and employer rules and policies are posted.

Employers also should publish a link to the notice on an internal or external website if other personnel policies or workplace notices are posted there.

For further information about the posting, including a detailed discussion of which employers are covered by the NLRA, and what to do if a substantial share of the workplace speaks a language other than English visit www.NLRB.gov

USDOT Cell Phone Ban for Commercial Drivers Effective January 3, 2012

U.S. Transportation Secretary Ray LaHood today announced a final rule specifically prohibiting interstate truck and bus drivers from using hand-held cell phones while operating their vehicles. The joint rule from the Federal Motor Carrier Safety Administration (FMCSA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA) is the latest action by the U.S. Department of Transportation to end distracted driving.

The final rule prohibits commercial drivers from using a hand-held mobile telephone while operating a commercial truck or bus. Drivers who violate the restriction will face federal civil penalties of up to $2,750 for each offense and disqualification from operating a commercial motor vehicle for multiple offenses. Additionally, states will suspend a driver's commercial driver's license (CDL) after two or more serious traffic violations. Commercial truck and bus companies that allow their drivers to use hand-held cell phones while driving will face a maximum penalty of $11,000. Approximately four million commercial drivers would be affected by this final rule.

More Information is available here:
Cell Phone Ban FAQs  http://www.fmcsa.dot.gov/about/other/faq/cellphone-ban-faqs.aspx

NJSA Successfully Moves New Legislation to Help Subs with Retainage Issues

Senate Bill 317, sponsored by Senator Richard Codey, and Assembly Bill 3990, sponsored by Assemblyman Jerry Green, continues to move through the legislative process.  NJSA has been the leading advocate of this measure, which will allow project owners on local public contracts and public school projects to release retainage to subcontractors upon completion of their portion of work and will also require that interest on retainage be paid to the subcontractor.  This will allow subcontractors to have their retainage returned faster and will eliminate the incentive for public owners to hold retainage unneccesarily.  The bill has passed the full Senate and has been released from Assembly Committee.  NJSA is now working to have the bill voted on by the full Assembly and moved on to the Governor's Desk.

NJSA Supports New American Dream Project

NJSA Executive Director Kevin Monaco, testified in support of the New American Dream project at a hearing on the Environmental Impact Statement held by the Meadowlands Commission and the Army Corps of Engineers.  The environmental approval process is a critical step in final project approval so this multi-billion project can move forward.  In a letter to NJSA, American Dream President Paul Ghermezian stated, "We appreciate your support and support of all your members".

President Obama Signs Repeal of 3% Withholding Tax

On Nov. 21, President Barack Obama signed into law H.R. 674, the 3% Withholding Repeal and Job Creation Act, marking the first proposal from Obama's Jobs Act to be enacted. The legislation repeals the requirement that federal, state and large local governments begin withholding 3% of each payment of $10,000 or more to a contractor after Jan. 1, 2013.  The effective date of the 3% withholding law was initially set for Jan. 1, 2011, by Section 511 of the Tax Increase Prevention and Reconciliation Act, signed in May 2006. When the American Recovery and Reinvestment Act was signed into law on Feb. 17, 2009, the 3% withholding law was delayed one year to Jan. 1, 2012. On May 9, 2011, the IRS issued the final rule, delaying implementation for one year. This repeal effort was strongly supported by the construction industry, including our national group, the National Subcontractors Alliance.