ASSEMBLY LABOR COMMITTEE
STATEMENT TO
ASSEMBLY, No. 6237
with committee amendments
STATE OF NEW JERSEY
DATED: DECEMBER 15, 2025
The Assembly Labor Committee reports favorably and with committee amendments Assembly Bill No. 6237.
This bill, as amended, requires payment of the prevailing wage for certain data center construction.
The bill requires payment of the prevailing wage for data center construction projects that have an electrical capacity of five megawatts or greater annually after construction.
Under the bill, contractors performing work on data center construction projects are required to meet certain eligibility, safety, insurance, and labor compliance requirements. A contractor may not perform work on a data center construction project unless the contractor is registered and in compliance with "The Public Works Contractor Registration Act," has not been debarred, submits certified payroll records, complies with Internal Revenue Service requirements for classification of independent contractors, and demonstrates compliance with certain safety and performance qualifications.
The bill requires contractors to maintain workers’ compensation insurance, general liability insurance, and owned and leased motor vehicle insurance. Contractors are also required to provide a performance and payment bond in an amount not less than 150 percent of the value of the contract.
Further, the bill requires contractors to be jointly and severally liable for any wages, benefits, or other amounts owed to any worker not appropriately paid by a subcontractor on the data center construction project. The bill restricts the use of temporary labor services to workers enrolled in registered apprenticeship programs.
The bill requires contractors to maintain daily sign-in sheets documenting each worker’s name, the worker’s contractor, and arrival and departure times. The bill also establishes construction training requirements for workers and supervisors and requires equipment-specific training for workers operating heavy construction equipment or power actuated tools.
The bill provides that all workers employed on a data center construction project undergo drug testing.
Finally, projects designed to have an average electrical usage of 25 megawatts or greater after construction may include a project labor agreement with a labor organization where it has been determined prior to the commencement of construction that the project advances the State and local community interests on energy, efficiency, quality, safety, timeliness, and a skilled labor force.
COMMITTEE AMENDMENTS:
(1) make changes to references in the bill concerning the designed electrical usage of data center construction projects from measurements in kilowatt-hours to a fixed annual usage measured in megawatts;
(2) remove a requirement that a contractor provide references demonstrating successful completion of no less than 10 projects of similar scope and value;
(3) remove a requirement that a contractor have a direct contractual relationship with the general contractor;
(4) remove a prohibition on contractors of the third tier from performing work;
(5) provide that a data center construction project designed to have an annual electrical usage of 25 megawatts or greater after construction may include a project labor agreement with a labor organization, when certain criteria are met. As introduced, including a project labor agreement was mandatory and referred specifically to the local Building and Construction Trades Council; and
(6) remove a requirement that all workers employed on data center construction projects undergo a criminal history record background check.