Julianna Naula and Walter Calle started their own trucking business.
PLUS: An overview of the new law that requires public works contractors to report certified payroll records online, how to choose the right excavator for your job, and a legislative update.
The ZW100-6 Hitachi wheel loader is perfect for a wide range of applications and job sites. In addition, it’s smooth and efficient to operate, and offers increased productivity and greater fuel efficiency.
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At Highway Equipment, we are SOLUTION PARTNERS. We help you find the right equipment and features, like the Hitachi ZW100-6, to get YOUR job done productively and predictably.
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Uncover the Importance of Being Engaged with NJLICA
One effective way for professionals and companies to achieve their goals is by being active members of a construction trade organization, such as NJLICA. It offers numerous benefits to enhance professional development, business growth, and industry influence. Here are some reasons why it’s important to be an engaged member of NJLICA.
Networking and Professional Relationships
One of the main benefits of participating is the chance to connect with colleagues in the industry. Establishing solid professional relationships is crucial for advancing your career and growing your business. NJLICA offers various opportunities, including conferences, seminars, and social events, for members to engage, exchange experiences, and work together on projects. These connections often result in valuable partnerships, mentorship possibilities, and new business opportunities.
Professional Development and Training
Continuous learning and skill development are essential for success in the construction industry. NJLICA regularly offers a variety of professional development and training programs designed to meet the specific needs of its members. These programs may consist of workshops, certification courses, and webinars covering topics such as project management, safety standards, and new construction technologies. By participating in these training opportunities, members can improve their skills, advance their careers, and enhance their company’s performance.
Advocacy and Representation
Construction trade organizations, such as NJLICA, play a crucial role in advocating for the interests of their members. They represent the industry in discussions with policymakers, regulators, and other stakeholders, ensuring that the concerns and needs of construction professionals are heard. Members of NJLICA can collectively influence industry standards, regulations, and policies. This advocacy can result in a more favorable business environment and reduced regulatory burdens.
Business Growth and Opportunities
Engaging with NJLICA members can lead to new
business opportunities. Membership provides access to platforms for showcasing products and services, including trade shows, online directories, and advertising opportunities. Members can also gain exclusive access to bidding opportunities, RFPs, and industry-specific contracts. These avenues can help companies expand their client base, increase visibility, and grow their businesses, fostering a sense of optimism and ambition.
Best Practices and Industry Standards
NJLICA is crucial in establishing and promoting best practices and industry standards. By adhering to these standards, members can ensure that their work meets high-quality benchmarks, enhancing their reputation and credibility. Additionally, sharing best practices among members fosters a culture of continuous improvement and innovation. This collective effort to maintain high standards benefits individual members and the industry.
Community and Support
Being part of a trade organization fosters a feeling of community and mutual support among its members. Construction professionals commonly encounter similar obstacles, and having a support system of colleagues who comprehend these challenges can be extremely valuable. NJLICA offers a platform for members to exchange experiences, seek advice, and assist one another. This sense of camaraderie can be especially beneficial during industry downturns or when dealing with intricate projects, making you feel connected and understood.
Get Involved!
NJLICA offers a wide range of benefits that can greatly influence individual careers and business success. The advantages are substantial, including networking opportunities, access to valuable resources, professional development, advocacy, and business opportunities. By becoming an active member of NJLICA, land improvement professionals and companies can stay competitive, well-informed, and connected, ultimately contributing to the growth and advancement of the industry.
Best
Always, Dennis Mikula, Jr. President, NJLICA
NJLICA BOARD OF DIRECTORS
Dennis Mikula, Jr., President Mikula Contracting, Inc.
Mark Krutis, Vice President Tom Krutis Excavating, Inc.
William J. Esposito, Historian Espo's Tree and Crane Service
Frank C. Del Guercio Tilcon NY
Ron Garofalo
DAG Mobile Aggregate Recycling, Inc.
Warren Gonzalez Foley, Inc.
Shelly Hewson Hewson Landscape, Inc.
Frank Horan Groff Tractor Mid Atlantic, LLC
Bob Manis North American Aggregates
Joe Mayers Septic Experts, LLC
John Rothberg
L.N. Rothberg & Son
Dave Vander Groef Wantage Excavating Co., Inc.
Buddy Freund, Executive Director
COVER PHOTO BY EVAN CLAY, UNSPLASH; PHOTO PAGE 5 BY BARTHELEMY DE MAZENOD, UNSPLASH
You’ve worked hard to construct a reliable business that takes pride in excellent workmanship. That matters.
UFG Insurance knows the importance of protecting the reputation you’ve built.
As the carrier of choice, we’re proud to offer members of the New Jersey Chapter of LICA a special opportunity to participate in our trusted state LICA insurance program.
Receive products and services tailored to unique industry needs, including comprehensive risk control.
Exceptional customer service that doesn’t end when a contract is signed.
IT'S THE SAME OLD ADVICE
The insurance marketplace is a roiling sea of confusion today. Losses, market conditions, and the economy are all forces playing a part creating insurance market turmoil. Insurance underwriters are pulling back, changing their underwriting parameters and generally becoming very conservative when assessing potential risk. In this market, accounts with losses on their record but still maintaining previously moderate loss ratios are suspect and finding a home for them is difficult.
The insurance marketplace is segmented across industries and coverage lines of insurance. Some segments or coverage lines are more affected than others. However, there is one coverage line that affects all segments, and that is automobile liability. Large trucking fleets have seen significant auto rate increases over the last several years, but so have other risks with auto exposures. It doesn’t matter if you have a large or small fleet or one truck. Auto rates are high and significantly higher if you have had a loss or two.
We will give you the same old advice: keep losses low to keep premiums low. We have all heard this before; as a matter of fact we have all heard this many times before. Insurance people keep saying this over and over again because it works! If you want to position your company to obtain the optimum premiums from year to year, keep your losses to a minimum. To keep your losses at a minimum, you have to get serious about it, and auto losses should be your target.
Look at your drivers! There should be a file for every driver with their application, written driver’s test, road test results, copy of current driver’s license, and a current state motor vehicle report. CDL driver files should follow the DOT file data requirements. For new drivers, the MVR review is essential, along with a written application that includes the potential employee’s agreement to allow you to obtain their MVR. The next step for your new driver is a written driver’s test and road test. This is the time to introduce your no-cell-phone-use-while-driving policy. This is big! Think of forbidding cell phone use as saving your employee from a serious injury or even saving their life. Introducing this policy early and then reinforcing this throughout the hiring process tells your potential employee you are serious.
You should have acceptable parameters for tickets and accidents. For example, no more than two moving violation tickets or two at-fault accidents or a combination accident and ticket in any five-year period. Make this part of your driving rules which should include:
• No mobile phone use while driving. Pull over to a safe area.
• Drivers must inform management about any prescription drugs they are taking, including medical marijuana.
• No personal use of auto unless permission is given by management.
• No one but the driver may drive the vehicle.
• Follow the rules of the road.
BY MICHAEL PUGACZEWSKI
• No use of any company vehicle under the influence of alcohol or drugs.
Your safety program can be as detailed as you want it to be. Contact your insurance company’s loss control representative and ask for assistance in developing your auto safety plan. They will be happy to work with you.
The most important component of any plan or program is management’s commitment to the plan. Successful implementation of your safety plan begins in the front office. If you want to improve your company’s safety attitude, then you must fully support the plan and live it along with your employees. You set the pace, your behavior creates your corporate culture, and by implementing your values, you influence those around you. If your mindset is safety, so it will be for those who work for you.
Michael Pugaczewski is a client and advisor and contributor at World Associates, a national insurance broker that provides insurance products and services to construction, commercial, and industrial companies.
Your #1 Source for Everything Under Construction
EMPLOYEE NON-COMPETE EMPLOYMENT AGREEMENTS ARE SOON TO BE BANNED
The Federal Trade Commission (FTC) has announced a nationwide ban on employee non-compete agreements, for reasons that it will increase employee wages, create greater innovation, and create new businesses.
The proposed new legislation on non-compete agreements includes several key points aimed at significantly restricting their use:
Broad ban on non-compete clauses
The rule prohibits employers from entering into or enforcing non-compete agreements with workers. This applies to both existing and new agreements, except those involving senior executives and in connection with the sale of a business.
Definition of worker and employer
The term “worker” is broadly defined to include employees, independent contractors, and unpaid workers. “Employer” includes partnerships, corporations, associations, and other legal entities under FTC jurisdiction.
Senior executive exception
Non-compete clauses with senior executives are allowed, but “senior executive” is narrowly defined as individuals in policymaking positions earning at least $151,164 annually.
De facto non-competes
The rule also targets de facto non-compete clauses, which may include broad non-disclosure or non-solicitation agreements that effectively function as non-compete clauses.
Sale of business exception
Non-compete clauses are permitted in the context of a bona fide sale of a business. This exception does not require the seller to hold a 25% ownership interest in the business.
State law interactions
The rule preempts state laws that are inconsistent with it but allows states to enforce laws that provide greater protection to workers.
Legal challenges
The rule is expected to face significant legal challenges, including arguments that the FTC lacks the authority to issue such a rule, and that it constitutes an overreach of regulatory power. IF cleared, this law is anticipated to be effective 9/4/24.
BY RICHARD GAYNOR
These proposed changes are designed to increase worker mobility and reduce the use of restrictive covenants that can limit job opportunities and wage growth.
IF an employer has an existing non-compete agreement currently in place, this proposed law, REQUIRES notification to employees. Employers must provide clear and conspicuous notice to workers that existing non-compete agreements are void and unenforceable. This notice can be delivered by hand, mail, email, or text.
What to do:
• Give clear and prompt notice to your employees. Include broad non-disclosure or non-solicitation agreements.
• Employment Practices Liability Insurance (EPLI): EPLI claims are related to employment practices, such as discrimination, harassment, wrongful termination, and other employment-related issues. Non-compete agreement violations, on the other hand, are generally considered a breach of contract matter and fall outside the scope of EPLI coverage. Insurance coverage can vary based on the specific terms and conditions of an EPLI policy. It’s essential for employers to carefully review their policy documents and consult with their insurance provider to understand the full extent of their coverage. In some cases, an employer might need to seek additional or specialized insurance coverage to protect against non-compete agreement violations and related contractual disputes.
EPLI is designed to protect employers from claims made by employees alleging various forms of wrongful acts in the workplace. Here are some key values and benefits of having EPLI:
Protection against legal costs
EPLI covers the costs associated with defending against employment-related lawsuits, including legal fees, court costs, and settlement or judgment expenses.
Coverage for various claims
EPLI can provide coverages for a wide range of employmentrelated claims, such as:
• Wrongful termination
• Discrimination (based on race, gender, age, disability, etc.)
• Sexual harassment
• Retaliation
• Failure to promote
• Breach of employment contract
• Negligent evaluation
• Infliction of emotional distress
Risk management
Having EPLI encourages and assists employers to implement proper risk management and human resources practices. Insurers often provide resources, training, and guidelines to help prevent employment-related issues.
Peace of mind
Employers can operate with greater confidence knowing they have financial protection against potential lawsuits from employees, former employees, and even job applicants.
Compliance with regulations
EPLI helps businesses stay compliant with various employment laws and regulations, as insurers often require adherence to certain standards as a condition of coverage.
Financial stability
Without EPLI, a significant employment-related lawsuit could have a devastating financial impact on a company. EPLI helps ensure that a business can withstand such financial shocks.
Overall, EPLI is a crucial component of a comprehensive risk management strategy for businesses of all sizes, helping to safeguard against the unpredictable and often costly nature of employment-related claims.
Richard Gaynor is the president of Middleton & Company Insurance, the insurance advisor for many trade and business associations. The company provides informative, relevant, and cost-effective business insurance protection.
LABOR LAW UPDATE, SUMMER 2024
The courts and the regulatory agencies had a busy past few months.
Let’s start with the U.S. Supreme Court. In the continuing NLRB battle with Starbucks, in June the Supreme Court reviewed a lower court’s decision reinstating seven employees who were discharged by Starbucks for allowing non-employees into a Starbucks store without management permission while the NLRB investigated whether Starbucks terminated their employment illegally. Starbucks appealed the reinstatement order to the U.S. Supreme Court, which reversed the order of reinstatement and sent the case back to the NLRB and the Court of Appeals with instructions to analyze the case under traditional legal standards for injunctive relief. Although the Supreme Court ruled that a more rigorous standard for injunctions applies to the NLRB, the NLRB’s General Counsel replied that in future injunction cases it would be “business as usual.” We’ll see whose standard prevails in NLRB injunction cases — the Supreme Court’s traditional, rigorous four-part standard, or the NLRB’s flexible, two-part standard.
Another Supreme Court decision whose full impact is yet to be felt is the Loper Bright Enterprises v. Raimondo case, which was decided in June and overturned a 40-year old case precedent known as Chevron deference. The court used the Loper case to warn federal agencies that their rules and regulations that are not expressly consistent with and sanctioned by a congressional statute are potentially unenforceable. In the Loper case a federal maritime agency imposed a new fee on fishing vessels that were required to include federal monitors on board. Congress did not give the agency power to impose the new fee, but the agency claimed that the statute was sufficiently ambiguous to permit the new fee. The court ruled that, without express authorization in statute, the agency lacked the power to impose and collect the new fee. The Loper decision has already resulted in many pre-Loper court decisions being sent back to lower courts with instructions to apply the Loper decision to the agency rule or regulation. The NLRB often makes rule changes by the decisional process, which now may be challenged under the Loper decision as lacking congressional authority.
Turning to the topic of non-compete agreements, on May 7, 2024, the Federal Trade Commission issued a final rule which as of Sept. 4, 2024 would in large part make non-compete agreements unenforceable in those states where they are now enforceable. The only non-compete agreements that are excluded from the FTC final rule are those entered into with senior executives prior to Sept. 4, 2024, agreements entered into between parties to the sale of a business, and agreements that are part of franchisor-franchisee agreements. The rule defines senior executive narrowly and not at all intuitively. Lawsuits were filed immediately — two in Texas (which were consolidated) and one in Pennsylva-
BY PATRICK MCGOVERN
nia. In early July, the Texas court stayed temporarily enforcement of the FTC rule pending a hearing on whether the rule should be enjoined permanently. The Texas court has committed to issuing its decision by August 30. Meanwhile, in Philadelphia, the court denied the motion to stay the effective date of the rule and held that the FTC has authority to issue the rule banning non-compete agreements. In the face of two conflicting federal court decisions, many employers are suspending their compliance with the FTC rule until definitive guidance comes from the courts and the FTC.
The USDOL’s Wage-Hour Division has also been active and on April 26, 2024 issued a rule that increases the minimum salary that an employer must pay an employee to qualify for the four major overtime exemptions under the Fair Labor Standards Act — executive, professional, administrative, and highly compensated employee exemptions. Specifically, effective July 1, 2024, the Wage-Hour Division increased the minimum salary requirements for the first three exemptions to $844 per week, or $43,888 per year. On July 1, the minimum salary amount for the highly compensated employee increased to $132,964 per year provided that the employee is paid a salary of at least $844 per week. The minimum salaries will increase again on January 1, 2025 to $1,128 per week or $58,656 per year for the executive, professional, and administrative exemptions, and to $151,164 annually for the highly compensated employee exemption. These minimums will increase yet again in the future. The Wage-Hour Division’s authority to decree and enforce the salary increases has been challenged in federal courts in the eastern and the northern districts of Texas, and so far the courts have provided no indication as to how they will rule and whether they will apply the Supreme Court’s Loper decision described above.
Another interesting court decision was issued by a federal court in Texas in June which blocked parts of a 2023 regulation by the U.S. Department of Labor under the Davis-Bacon Act, which applies to many construction projects receiving federal funding. The 2023 USDOL regulation introduced for the first time a requirement that under certain circumstances, delivery drivers and material handlers must be paid a prevailing wage. The regulation allowed for the fact that in many instances, a driver will spend a minimal amount of time on the construction project site, in which case the driver is not eligible for prevailing wages. However, the regulation required employers to account for all driver trips to the construction site and to pay the driver prevailing wages if the total time the driver spends at the construction site exceeds a de minimis amount, with no guidance as to what is a de minimis amount of time. The court ruled that the USDOL lacked authority to expand the reach of Davis-Bacon to delivery drivers and material handlers, and entered a preliminary injunction barring these parts of the regulation. The injunction will remain in effect until such time as it is reviewed by the Texas court or dissolved on appeal.
Finally, a court challenge to New Jersey’s Temporary Workers’ Bill of Rights Law (BOR), which took effect in August 2023, has been rejected for now by the Third Circuit Court of Appeals. The BOR applies to several occupational categories including building and grounds clearing and maintenance operations, and requires an employer that uses a temporary laborer supplied by a temporary help firm to pay the temporary laborer a wage that is not less than the average rate of pay and average cost of benefits that the employer is paying its full-time employees who perform the same or similar work. The BOR has many other requirements. The court challenge to the BOR was brought by staffing agencies on the grounds, among other reasons, that by requiring the employer to provide benefits to the temporary laborer, the BOR violates federal benefits law (Employee Retirement Income Security Act) and ERISA’s preemption of state laws that regulate benefits
programs regulated by ERISA. The challenge to the BOR under ERISA remains pending before the court, but the Third Circuit Court of Appeals rejected the staffing agencies’ argument that the BOR violated the Commerce Clause of the U.S. Constitution, by placing a burden on New Jersey staffing agencies that did not apply to out of state staffing agencies.
As you see in the above developments, many of these labor law issues remain unsettled at the moment, and we will give you another update later this year.
For over 30 years, Genova Burns has partnered with companies, businesses, trade associations, and government entities on matters in New Jersey and the greater northeast corridor between New York City and Washington, D.C.
SUPREME COURT RULING SPARKS URGENCY IN REASSESSING BUY-SELL
AGREEMENTS FOR CLOSELY-HELD COMPANIES
Ensuring the seamless transition of ownership and safeguarding a company’s stability is of paramount importance to any closely held business. Buy-sell agreements play a crucial role in achieving these objectives. These agreements dictate the terms under which shares of the business can be bought or sold, typically triggered by events such as death, disability, retirement, or voluntary departure of an owner. A recent decision by the United States Supreme Court necessitates that owners of closely held businesses review their buy-sell agreements, particularly those that involve using life insurance proceeds to purchase a deceased shareholder’s interest in the company.
In a unanimous decision issued on June 6, 2024, the Supreme Court held that life insurance proceeds payable to a corporation are includible in the corporation’s value for federal estate tax purposes, with no offset allowed for the obligation to purchase a deceased shareholder’s interest.
Michael and Thomas Connelly were the owners of Crown C Supply, a building supply corporation (the “company”). Michael was the CEO and owned almost 80% of the stock, with Thomas owning the rest. The brothers had entered into a buy-sell agreement that was to be effective in the event of their deaths. Under the agreement, the surviving brother was given the option to purchase the deceased brother’s shares. If he did not do so, the company itself would be required to redeem the shares. The company obtained life insurance policies of $3.5 million on each brother.
When Michael died in 2012, Thomas elected not to purchase Michael’s shares and therefore the company was obliged to redeem them. The company received the insurance proceeds and redeemed Michael’s shares for $3 million, a value agreed to by Thomas and by Michael’s son.
The federal estate tax return filed for Michael’s estate reported the fair market value of the company at Michael’s death to be $3.86 million, which did not include the $3 million in life insurance proceeds used to redeem Michael’s shares. The
BY ANNE MARIE ROBBINS
appraisal supporting the fair market value of the company offset the insurance proceeds by the redemption obligation. On audit, the IRS disagreed with the estate’s appraisal and included a portion of the insurance proceeds in the value of the company, thereby increasing the federal estate tax bill by $1 million.
Two lower federal courts, a Missouri District Court and the U.S. Court of Appeals for the Eighth Circuit, had previously held for the IRS, and the Supreme Court affirmed.
In the Supreme Court’s ruling, the court agreed with the IRS. The court held that contractual agreements to purchase shares of deceased shareholders do not serve to diminish the value of those shares, which must reflect the corporation’s fair market value when calculating the federal estate tax. Therefore, a company may not deduct a contractual obligation to purchase a deceased shareholder’s shares with life insurance proceeds. The court stated that “[a]n obligation to redeem shares at fair market value does not offset the value of life-insurance proceeds set aside for the redemption because a share redemption at fair market value does not affect any shareholder’s economic interest.”
A more favorable result could have been obtained if the brothers had established a cross-purchase buy-sell agreement or a life insurance LLC, thus avoiding payment of the insurance proceeds to the company. It appears clear that in view of the result in Connelly, now is the time for business owners to review their buysell agreements and consider whether changes may be advisable.
Anne Marie Robbins is a partner with Lindabury, McCormick, Estabrook & Cooper. The company provides litigation and transactional counsel to a broad spectrum of clients in the construction industry. Anne Marie can be reached at 908-233-6800 or arobbins@lindabury.com.
CHOOSING THE RIGHT EXCAVATOR
Selecting the right excavator is a pivotal decision for any land improvement project. As a construction equipment dealer, I’ve guided numerous clients through this process and understand how crucial it is to match the right machine to the specific needs of the job. Here’s a detailed guide on how to choose the perfect excavator for your land improvement projects, drawing on industry expertise and real-world experiences.
1. Assess Your Project Requirements
Before diving into equipment specifications, it’s essential to thoroughly understand your project’s unique requirements:
Project Scope: Identify the scale of your project — whether it’s residential landscaping, commercial site preparation, or largescale infrastructure work. The scale will dictate the type and size of the excavator you need. For example, residential projects often benefit from mini excavators due to their maneuverability, while larger commercial projects may require more robust, larger models.
Terrain and Soil Conditions: Different terrains and soil types demand different types of excavators. For rocky or uneven ground, a robust machine with high digging force is necessary. Conversely, for softer soils, an excavator with good flotation and stability will be more suitable.
Attachments and Versatility: Consider the attachments you’ll need for the project, such as buckets, augers, or breakers. Ensure that the excavator you choose can accommodate these attachments and perform various tasks effectively.
2. Choose the Right Excavator Type Excavators come in various sizes and types, each suited for different tasks:
Mini Excavators: Ideal for small-scale projects and confined spaces. Mini excavators, 4,000 to 12,000 pounds, offer versatility and ease of maneuverability, making them perfect for residential landscaping, trenching, and small grading tasks. They provide adequate power while being compact enough to navigate tight areas.
Standard Excavators: For medium to large projects, a standard excavator, 18,000 to 50,000 pounds, provides a good balance of power, reach, and agility. These machines are suitable for a variety of tasks including grading, digging, and material handling. They offer enhanced capabilities without the bulk of larger models.
Large Excavators: For heavy-duty and large-scale projects, such
BY FRANK HORAN
as major infrastructure development, a large excavator, 60,000 to 100,000 pounds or larger, is essential. These machines provide significant digging power, reach, and stability. They are designed to handle demanding tasks like deep excavation, large-scale grading, and material handling.
3. Evaluate Key Features
When choosing an excavator, consider these critical features:
Hydraulic System: The hydraulic system’s efficiency affects overall performance. Look for advanced hydraulic systems that offer precise control and greater power. Modern excavators are designed with high-performance hydraulics to enhance produc-
Scheideler Excavating Co.
Operator Comfort: Operator comfort can impact productivity and safety. Features such as ergonomic controls, spacious cabins, and excellent visibility contribute to a better working environment. Machines with advanced cab designs reduce operator fatigue and enhance overall efficiency.
4. Consider Durability and Support
Build Quality: Durability is crucial for long-term investment. Choose excavators known for their robust construction and longevity. High-quality materials and engineering contribute to a machine’s ability to withstand the rigors of demand ing projects.
Brand Reputation: Reputable brands are often synonymous with reliability. Brands with a strong track record in the industry tend to offer machines with proven performance and durability. Researching brand reviews and industry feedback can provide valuable insights.
Warranty and Service: A comprehensive warranty and readily available support are vital. Ensure the manufacturer of fers strong warranty coverage and that local service centers are accessible for maintenance and repairs. This ensures minimal downtime and long-term peace of mind.
5. Analyze Cost vs. Benefit
tion project, a contractor opted for a standard excavator. The machine’s balance of power and agility made it perfect for grading and digging tasks. The advanced hydraulic system and operator comfort features greatly enhanced productivity.
Infrastructure Development: A large infrastructure project required a robust, large excavator to handle deep excavation and heavy lifting. The contractor selected a large model with high digging force and stability, ensuring efficient project completion despite challenging conditions.
Conclusion
Choosing the right excavator for land improvement projects involves a careful assessment of project needs, equipment features, and overall costs. As a construction dealer, my goal is to ensure that you find the perfect excavator to meet your requirements and maximize project success. If you need personalized advice or want to explore available models, please reach out. The right excavator can make a significant difference in your project’s efficiency and success, and I’m here to help you make the best choice.
Frank Horan is a territory manager with GT Mid Atlantic, a proud member of NJLICA and an equipment dealer with 15 locations in New Jersey, Pennsylvania, Delaware, and Maryland. “Your #1 source for everything under construction.”
Initial Investment: Consider the initial cost of the excavator and whether leasing or financing options might be more suitable for your budget and project duration.
Operating Costs: Factor in ongoing costs such as fuel, maintenance, and repairs. Choosing an excavator with fuel-efficient engines and low maintenance requirements can help manage these costs effectively.
Resale Value: The potential resale value of the excavator can impact your long-term investment. Machines from reputable brands often retain higher resale values, providing better returns on your investment.
6. Real-World Examples
To provide a practical perspective, let’s look at a few real-world scenarios:
Residential Landscaping Project: A client needed a compact yet powerful machine for a residential landscaping project. They chose a mini excavator, which allowed them to navigate tight spaces and complete the project efficiently. The machine’s versatility and compact size were ideal for the job.
Commercial Site Preparation: For a commercial site prepara-
PHOTO BY FRANK HORAN
SAFETY PERSPECTIVES
HIGH PHISHING ALERT: FAKE EMAIL
An email is being sent to registered entities by someone pretending to be FMCSA and requesting that you complete attached forms, which ask for SSN and USDOT PIN. FMCSA does not require such information on the official FMCSA forms. DO NOT fill out attached forms. Always refer to the official FMCSA forms. In some cases, they are also asking for a certificate of insurance and driver’s license to help protect you against fraud. There is also a threat that if you don’t respond within a day that you will be fined, which is also not an FMCSA practice. The email shows that it came from either safety@fmcsa.gov or filing@fmcsa.gov, which are not legitimate email addresses and are not used or owned by FMCSA. Next, if you reply to the email, it actually goes to @fmcsa-safety-fmcsa.com, which is also not a domain owned or used by FMCSA. Not only is some of this information Personal Identifiable information (PII), but this information would also allow the unauthorized party to gain access to your FMCSA account. The email containing the link is also very convincing that this is coming from FMCSA.
Communications from FMCSA relating to information re-
If you are an open shop contractor there are many reasons to implement a prevailing wage plan. As a contractor working on 20% or more state/federal government work there are quite a few advantages to company, employee and employer that can help to move your business forward.
• Save on payroll burden; WC, GL, FICA, FUTA, SUTA
• Fringes help pay for company sponsored employee bene ts
• Become more competitive when bidding; Win more bids!
• Employee receives pre-taxed retirement plan
• Compliance is top priority at TLC4 Prevailing Wage, keeping you compliant
• Levels the playing eld between union/open shop companies
BY ANTHONY MORREALE
quests of this type would either request you to log in to your portal account at FMCSA Login (dot.gov) or come directly from an FMCSA dedicated mailbox. While these emails typically end in a “.gov”, we encourage our stakeholders and customers to verify any email or communication they feel to be suspicious with the appropriate agency. The Federal Trade Commission (FTC) recommends following certain procedures for email verification.
FMCSA’s Processing Time for Registration Forms
The FMCSA has received several inquiries on the delays in processing registration-related paper forms. The reason for the increased wait times is so that your company changes are verified for compliance, and your information is protected from fraudulent activity. Therefore, we have changed our processing timeframe for forms submitted on paper, that can otherwise be submitted electronically online, to up to 30 days to allow time for the additional verification procedures and processing. They do expect complete, accurate and compliant requests to be processed in less time.
High Phishing Alert: Fake Safety Audit
An email is being sent to registered entities by someone pretending to be FMCSA and notifying you need to schedule a safety audit. The link to request the safety audit has what appears to be a SAFER URL and mirrors FMCSA’s MC-150, but includes fields to enter a PIN #, EIN #, and social security number. Not only is some of this information Personal Identifiable information (PII), but this information would also allow the unauthorized party to gain access to your FMCSA account. The email containing the link is also very convincing that this is coming from FMCSA. Communications relating to safety audits will typically come directly from an FMCSA dedicated mailbox or from the entity
within the State that has been assigned the responsibility to conduct the safety audit. While these emails typically end in a “.gov,” FMCSA encourages stakeholders and customers to verify any email or communication they feel to be suspicious with the appropriate agency or contact your FMCSA Division Office directly to clarify. The Federal Trade Commission (FTC) recommends following certain procedures for email verification.
For assistance with your USDOT and OSHA compliance, don’t hesitate to get in touch with Anthony Morreale, co-owner of Tri-State Safety Solutions, at 732-551-3833, amorreale@tsss-nj. com, or visit our website, www.tsss-nj.com.
MONEY TALKS
WHAT BUSINESS OWNERS NEED TO KNOW ABOUT THE NEW JERSEY SECURE CHOICE ACT
BY TRACY CARVER
In recent years, several states have implemented state-mandated retirement programs to assist businesses in offering retirement benefits to their employees and to support individuals in saving for their futures. States that have launched these state-sponsored retirement initiatives include California, Illinois, Oregon, Washington, New York, and, most recently, New Jersey.
In March 2019, Governor Phil Murphy signed the New Jersey Secure Choice Act, which established the Secure Choice Savings Program. This state-sponsored retirement plan aims to assist more private sector employees in saving for their future. The program is managed independently by the Secure Choice Savings Board.
Below, we’ll outline key information for business owners in New Jersey regarding the program, including:
• Is the New Jersey Secure Choice Act mandatory?
• How does the program operate?
• What deadlines must business owners adhere to?
• What are the qualifying alternatives to the New Jersey Secure Choice Act?
How Does the New Jersey Secure Choice Act Work?
Employers are required to enroll eligible employees into the New Jersey Secure Choice Savings Program through automatic payroll deductions, unless an employee chooses to opt out. The default contribution rate is set at 3%, but employees have the option to adjust their contribution level once per year.
Is the New Jersey Secure Choice Act mandatory?
Yes, the New Jersey Secure Choice Act is mandatory for:
• employers with at least 25 employees
• employers that have been in business for a minimum of two years
• employers that have not offered a qualified retirement plan in the previous two years
Although the program is compulsory for employers, eligible employees can opt out at any time. To qualify for the plan, employees must be 18 years or older, reside in New Jersey or be employed by a New Jersey-based employer, and have wages subject to tax withholding.
Are there penalties for non-compliance?
Yes, employers who fail to enroll eligible employees (who have not opted out) may face penalties. (Deadlines, fees, and other program details are subject to change by the state without notice and should be checked prior to making any decisions. If you already offer a qualified employer-sponsored plan, exemptions may be required. For more program details go to https://nj.gov/ treasury/securechoiceprogram/.) The penalties include:
• a written warning in the first year
• a $100 fine in the second year
• a $250 fine for each non-enrolled employee in the third and fourth years
Employers can avoid these penalties by either enrolling eligible employees in the program or by providing a qualified retirement plan through a provider like TLC4 Prevailing Wage.
What deadlines should I be aware of?
Although the mandate was enacted in 2019, the program is still being rolled out. For the latest deadlines and updates, visit New Jersey’s program website or sign up for e-notifications from the state.
What alternatives can employers consider?
To fulfill the mandate, New Jersey employers have the option to provide a qualified retirement benefit, such as a 401(k) plan. Here are some advantages of offering a 401(k) plan:
• Higher contribution limits: 401(k) plans allow for larger contributions compared to state-mandated IRAs, enabling employees to save more for retirement.
• Employer contributions: Contributions made by employers can enhance employee participation and engagement.
• Tax advantages: Employer contributions to 401(k) plans are tax-deductible.
• Flexibility and customization: 401(k) plans can be tailored to meet specific business needs, unlike standardized state programs.
• Competitive edge: Offering a 401(k) can improve your
INDUSTRY SURVEY
company’s appeal in the job market, aiding in the recruitment and retention of top talent.
• Enhanced employee engagement: A well-structured retirement plan can significantly boost employee morale and financial well-being.
As an employer, you have the choice to either enroll your employees in the New Jersey Secure Choice Savings Program or implement your own company-sponsored retirement plan, such as a TLC4 Prevailing Wage 401(k). Both options support employees in saving for their future, allowing you to select the approach that best aligns with your business goals and employee needs.
Tracy Carver is the owner and president of TLC4 Prevailing Wage, where she has been delivering compliant 401(k) solutions to contractors for over seven years. With more than 16 years of experience working with contractors, Tracy brings a wealth of knowledge to her clients. Prior to founding TLC4, she worked with two national retirement plan providers, acquiring the expertise necessary to offer exceptional solutions tailored to the needs of contractors.
DELIVERS ANALYSIS
AND OPPORTUNITIES FOR SUCCESS
More than halfway through 2024, change remains a constant for the construction and architecture and engineering (A&E) industries amid a year marked by potential growth and ongoing challenges. Despite facing a range of operational hurdles, industry leaders maintain an optimistic outlook for the remainder of the year and beyond. As noted by an industry executive, “Change is inevitable.”
In response to this shifting landscape, Grassi’s comprehensive industry survey of 250 Construction and A&E leaders identified key insights on revenue expectations, top risks, technology investments, and more. The study, available to download, reveals a complex landscape marked by confidence and caution. Despite some challenges, the industry is resilient by adapting its strategies and seeking new solutions.
The good news is that 56% of respondents expect revenue to increase this year, with 63% of general contractors leading the pack. However, inflation and labor shortages are overshadowing this positive outlook. More than half of executives cite the rising cost and limited availability of skilled workers as the biggest threat to their businesses over the next 12 months. Inflation ranks as the top overall risk for construction companies, while A&E firms put financial concerns in the number one spot.
BY CARL OLIVERI
a year ago. A third have seen these expenses jump by 10% or more. Supply chain disruptions are compounding the financial strain, causing significant pricing volatility. In response, construction firms are getting creative, rethinking their estimating practices, negotiating purchase agreements, expanding their vendor networks, and strategically raising prices.
Despite these hurdles, the industry is proving resilient. Access to credit has remained largely stable, with some contractors even noting more accessible bank financing and/or increased surety programs as compared to a year ago. While there are pockets of concern, such as dimmer views on the New York City residential sector among subcontractors, many leaders face the future with pragmatic confidence.
Technology is emerging as a critical area of focus and investment. More than half of companies plan to upgrade their technological capabilities in the next 12-18 months, with project management and collaboration platforms leading the way. Artificial intelligence, building information modeling, data analytics, and wearables are also gaining traction as firms look to harness innovation for competitive advantage.
These macroeconomic pressures are hitting the bottom line, with over 80% of companies reporting higher overhead costs than
Forward-thinking companies are also beginning to embrace environmental, social and governance (ESG) frameworks to build long-term value and resilience. While formal ESG programs are still nascent, a quarter of general contractors and a third of A&E
firms have either established initiatives or are actively exploring this space.
On the ownership front, employee stock ownership plans are attracting increased attention as a succession planning vehicle, particularly in the A&E sector, where a quarter of firms are considering or have already adopted this model.
In this dynamic landscape, adaptability is not just a choice but a necessity. As one industry executive noted, “Change is inevitable, but we’re not making drastic shifts. We’re making subtle adjustments with vendors to secure better pricing.” This sentiment underscores the industry’s need to stay agile and responsive to emerging trends and challenges. Another leader summed up the imperative for innovation: “The advancements in AI technology will be drastic in the future. We’ll have to implement AI technologies in the architecture industries to make sure we’re competitive enough. AI, VR, AR — everything will be a major influence everywhere.”
Visit our website and download the complete Grassi Construction and A&E Industry Outlook report today for a deeper dive into these trends. You’ll get exclusive insights and analysis to help you:
• Understand how your firm stacks up against industry peers on critical financial and operational metrics.
• Pinpoint the most pressing risks and opportunities for your business in 2024.
• Discover how industry leaders leverage emerging technologies, AI, ESG and ESOPs to drive growth and profitability.
• Identify practical strategies for navigating labor challenges, supply chain disruption, inflation, and more.
Download the complimentary report to position your firm for a successful year ahead.
Editor’s Note: Grassi’s 2024 Construction, Architecture & Engineering Survey was fielded between February-March 2024. Information about congestion pricing was included before Governor Hochul’s decision on June 5, 2024, to put the plan on indefinite pause.
Carl Oliveri is a partner and construction practice leader with Grassi. He specializes in project-centric and companywide financial modeling, operational strategy development, financial statement attest services, and income tax method analysis. Carl can be reached at 212-223-5047 or coliveri@grassipas.com.
THE MULTIFACETED BENEFITS OF A PERSONAL CFO FOR BUSINESS OWNERS
BY MICHAEL J. GUARINO III
In our last article, I discussed the role of a personal CFO for your business. Remember, the decision to engage a personal CFO is a pivotal moment for any business owner. It represents a shift from navigating the complex world of finance alone to partnering with a seasoned expert dedicated to optimizing both the company’s and the owner’s financial health. This second article in our three-part series delves into the multifaceted benefits that a personal CFO brings to the table. From constructing financial strategies to ensuring every decision aligns with long-term goals, a personal CFO’s impact is profound and far-reaching. Their role is not just about managing finances, but about fostering growth, stability, and confidence with the business owner’s best interests in mind.
Comprehensive Financial Planning
A personal CFO does not just look at the numbers; they see the story behind them and the future they can create. They embark on a deep dive into the business owner’s financial life, considering personal aspirations, family commitments, and business goals to craft a comprehensive financial plan. This plan encompasses retirement planning, education funding, estate planning, and investment strategies, tailored specifically to the individual’s circumstances and objectives.
The power of this comprehensive approach lies in its ability to provide clarity and direction. For instance, by analyzing the business’s cash flow in conjunction with the owner’s personal cash flow, a personal CFO can identify opportunities to increase savings, reduce tax liabilities, and invest more effectively. This holistic strategy ensures that every financial decision supports the overarching goal of financial stability and growth.
Risk Management and Mitigation
In the world of business, risk is a constant companion. However, with a personal CFO by your side, this risk becomes manageable. They employ a proactive approach to identify potential financial threats to both the business and personal finances, including being under-insured, market volatility, legal liabilities, and operational risks. Once identified, the personal CFO develops a tailored risk management strategy, which may include diversifying investments, securing comprehensive insurance coverage, and establishing legal structures to protect assets.
This proactive risk management is vital for safeguarding the business owner’s hard-earned wealth and ensuring the longevity of the business. For example, by regularly reviewing the business’s financial health and market conditions, a personal CFO can anticipate issues and adjust strategies accordingly, minimizing potential impacts.
Customized Investment Strategies
Investment is not a one-size-fits-all matter. A personal CFO recognizes this, creating customized investment strategies that align with the business owner’s risk tolerance, financial goals, and timeline. Whether it’s maintaining a cash account for your business, diversifying assets, exploring alternative investments, or leveraging tax-advantaged accounts, each recommendation is made with the owner’s unique profile in mind.
Enhanced Decision Making
At the heart of a personal CFO’s value is their ability to enhance decision-making. With an expert to analyze financial data, assess market trends, and provide unbiased advice, business owners can
make more informed, strategic decisions. Whether it’s deciding on a significant investment, planning for expansion, or navigating economic downturns, a personal CFO provides the insights and guidance necessary to make decisions with confidence.
Conclusion
The benefits of having a personal CFO are extensive and impactful. By offering comprehensive financial planning, personalized investment strategies, and proactive risk management, a personal CFO not only ensures the financial health of the business, but also secures the personal wealth of the owner. Their expertise in enhancing decision-making processes further underscores their indispensable role in achieving long-term financial success and stability. As we look forward to the next article, we will explore
LEGISLATIVE NEWS
the practical steps involved in choosing and working with a personal CFO, ensuring you find the right financial partner to guide you on your journey to financial prosperity.
Michael J. Guarino III has been helping business owners and individuals with succession planning for over 18 years. His firm, Main Street Wealth Management, serves businesses owners and individuals with CFO services, financial planning, retirement planning, insurance, investing, and developing exit strategies for business owners nationwide. If you’d like to learn more about how Mike Guarino can help your business, please reach out via email to Mike@mswealth.com or call 973-625-1112 ext. 2 to schedule a complementary and 100 percent confidential Zoom or phone consultation.
ADMINISTRATION/HILL HIT RESET BUTTON
Events of the past few weeks have caused Congress and the political world to hit the reset button. The assassination attempt on former President Trump, the announcement that President Biden will not seek reelection, and the conviction and resignation of Senator Menendez has turned the legislative schedule and campaigns upside down. While there are still around 100 days for the campaigns to make their cases, pending before Congress is significant legislation that will impact land improvement contractors in New Jersey. Recent events cause additional uncertainty if and how these bills will or will not be considered this year.
If Congress does not come together this year to enact a bipartisan farm bill, extend tax cuts, and reauthorize infrastructure spending, the legislative process will begin anew in the next Congress. Given the significant legislative (and possibly administrative) duties of a new Congress, including seating of new leadership and committees, Senate nominations, and other essential actions during the first months of the year, there is a groundswell of support to act on these bills this year.
The Farm Bill
While the House Agriculture Committee has approved a farm bill reauthorization that awaits House floor action, the Senate has yet to act. The Senate Committee on Agriculture, Nutrition, and Forestry has jurisdiction over issues important to New Jersey, including the U.S. Department of Agriculture’s farm, conservation, and rural-development programs; food stamps and nutrition; and forestry policy. The committee is developing its version of a farm bill to address critical issues such as:
• extending a fair safety net and a permanent disaster assistance program for farmers
• continuing the sugar program with additional protections against imports of subsidized foreign sugar
• strengthening the support available for dairy farmers
BY NICK YAKSICH
• allowing farms to meet more of our nation’s energy needs
• supporting the economic development of rural communities
The Tax Bill
Major provisions in the Tax Cuts and Jobs Act of 2027 (TCJA) expire in late 2025 unless Congress extends them. If the TCJA provisions sunset, most everyone will be affected one way or another. Tax brackets, income tax rates, child tax credit, state and local tax deductions, mortgage interest deductions and much more will literally change overnight. At this time, pulling together a tax bill is a monumental task, but in the legislative process, I have learned never say never.
The Infrastructure Bill
In 2022, President Biden signed into law one of the largest infrastructure packages in U.S. history after months of bipartisan negotiations and tense political infighting, shoring up $1.2 trillion in funds, including $550 billion in new investments for the nation’s bridges, airports, waterways, public transit, and more. Total commitments to New Jersey as of May 31, 2024 are:
•
•
•
32% average state capital spending supported by federal funds;
$3.5 billion federal infrastructure funds committed;
$120.2 million awarded through nine grants for road and bridge repairs.
The authority to spend infrastructure funding expires next year so Congress must act on a new infrastructure bill. Many members of Congress and lobbyists will be saying, “Didn’t we just do that?” Estimates are that only 20% of the funding from the 2022 Act has been spent, so the challenge will be convincing elected officials that action needs to be taken.
The Outlook
Despite the tumultuous couple of weeks our nation has faced, there should be optimism that farm, tax, and infrastructure bills are at the forefront of the congressional agenda once the November elections are over. Maybe, just maybe, things in Washington will settle down.
Nick Yaksich serves as the director of government relations for LICA.
LEGISLATIVE SPRING/SUMMER 2024 UPDATE
BY ALADAR G. KOMJATHY
The highlight of the spring and early summer session of the legislative report was the passing of the 2025 fiscal year budget.
New Jersey lawmakers sent a $56.6 billion fiscal year 2025 budget to Democratic Gov. Phil Murphy, hiking taxes on high-earning businesses and funding for many state services and programs.
The state constitution requires a balanced budget to be enacted by July 1.
Here’s a closer look at what’s in the budget, which would spend 4.2% more than the plan Murphy signed last year.
Are there any new taxes?
Yes. The budget calls for increasing the state’s corporation business tax on companies that make more than $10 million a year. The current 9% rate would climb to 11.5%. Business groups say that would give New Jersey the nation’s highest tax rate and punish the state’s best corporate citizens.
Why are taxes going up?
The higher rate was first proposed by Murphy as part of his budget proposal early this year to help New Jersey Transit. He’s billing the levy as a corporate transit fee to help the beleaguered agency, which has regularly had to use capital funds to help finance projects.
Critics note that the revenue won’t go to transit until next year. The current budget keeps it in the general fund, so when the money goes to transit next year, whatever is being paid for now out of the general fund would need to be replenished or cut, those critics say.
Are there other tax changes?
Yes. The budget calls for ending a sales tax holiday on school supplies that had gone into effect around the start of the academic year. That cut was first introduced in 2022 when the Democrats who control state government aimed to show voters they were making the state more affordable.
What about property taxes?
New Jersey has among the nation’s highest property taxes, levied by local governments to finance services and schools. The state dedicates some income tax revenue to fund local governments, which helps keep property tax rates from growing even higher. This budget calls for increasing state K-12 funding to fully implement an aid formula ratified by the state Supreme Court, raising such aid to more than $11 billion, up nearly $1 billion from the current fiscal year. The budget also has about $2.5 billion for direct property tax relief, continuing programs introduced in 2022 and 2023 to help residents, renters, and seniors. The average property tax amount in 2022, which is the most recently available information, is about $9,500, according to the state.
What else is in the budget?
Quite a bit, given it funds all aspects of state government, from the executive departments to public colleges and universities, to the legislature itself, which this year passed a 67% pay raise for lawmakers, their first since 2002, which goes into effect in 2026. Overall, spending is up just over 4% compared with the current fiscal year budget.
It includes a number of expenditures — sometimes referred to as Christmas tree line items because they’re viewed as gifts for
BY
PHOTO
JOSHUA SUKOFF, UNSPLASH
specific constituencies. They include funding for ending homelessness, helping people re-enter society from prison, fire departments, arts programs, and one city’s effort to teach life skills through tennis.
Other highlights:
U.S. Senator Robert Menendez was convicted in July of all charges filed against him by the US Attorney’s Office. The Senator has announced he will step down on Aug. 20, 2024 after a long career in New Jersey politics. He is to be sentenced in late October. Governor Murphy is expected to name a caretaker soon after the Senator steps down.
The June primary to decide who will replace the Senator was won by Congressman Andy Kim, Democrat, Third District, and businessman Curtis Bashaw from Cape May County.
All 12 congressional seats are up for reelection in November, along with numerous county and Municipal races.
We continue to monitor legislation and advocate on behalf of NJLICA members. This spring, the legislature passed legislation updating and streamlining the Open Public Meetings Act, which has not been done in over 20 years. This bill was passed with bipartisan support.
We continue to attend events and meetings to network with decision makers to let them know of our views and concerns as it affects the membership. We will have a full pre-election preview in the fall edition. Please have a safe and enjoyable rest of the summer.
Aladar G. Komjathy and Kean LCC represent NJLICA’s interests in Trenton with both the legislative and executive branches of government.
JULIANNA NAULA AND WALTER CALLE WJC TRUCKING
During her childhood, Julianna Naula’s uncles were owner/operators, each owning five or six trucks. She never thought she would follow in their footsteps. Even though she helped with her family’s business paperwork, she went on to become the assistant director of financial aid at Lincoln Tech. It was actually her husband, Walter Calle, who motivated them to establish their own trucking business.
The two first met when Calle was driving for Naula’s cousin’s company. After more than a decade of driving, Calle was eager to become his own boss. With Naula being his biggest supporter, she fully backed the idea.
WJC Trucking was established in 2021. Today, the company operates three trucks with apportioned plates, enabling them to transport materials for clients not only in New Jersey but also in Pennsylvania and New York. They also subcontract family members to manage the additional workload as WJC Trucking continues to expand and attract new clients.
Naula has played a significant role in this growth by handling the company’s publicity. It’s a part of her job that she particularly enjoys.
“I enjoy talking to people,” she says. “So, when I introduce myself to companies, I love meeting new people and getting to know them.”
Naula takes care of administrative tasks like paperwork, while Calle manages logistics, ensuring there are enough trucks to meet customer demands. WJC Trucking aims to be flexible with clients’ schedules, offering trucks on short notice whenever possible.
“It can be very stressful,” Naula admits. “It’s a never-ending job. Clients can call or text anytime they need a truck. We just say ‘yes’ and figure it out.”
Additionally, they assist customers in finding good prices on materials, which they believe sets WJC Trucking apart. Celebrating their third anniversary this September and reflecting on their growth, Naula and Calle are thinking about the future of their business, with NJLICA part of their planning.
“We had to join because of the requirements, but we appreciated the benefits this program offers,” Naula explains. “The classes are helpful for us as a new company. They also offer training courses, and we hope to enroll someone in the driver’s course.”
Outside of work, Naula and Calle enjoy spending time with their five children. They love traveling, going to waterparks, and camping. Their 17-year-old son is interested in becoming a mechanic, which has Naula and Calle thinking about having their own shop for their trucks, where their son could work. Naula values working with family because it allows for trusted discussions about future plans.
And WJC Trucking has a major goal for the future: “I hope to be the top choice for construction companies needing transportation services,” Naula says. “I want them to know they can rely on us to get the job done.”
Kelley Freund is a freelance writer based in Virginia.
I HOPE TO BE THE TOP CHOICE FOR CONSTRUCTION COMPANIES NEEDING TRANSPORTATION SERVICES. I WANT THEM TO KNOW THEY CAN RELY ON US TO GET THE JOB DONE. “ “
SCHOLARSHIP RECIPIENTS
Gianna Andrade University of Delaware J & G Trucking Services
Faith Carlson Castleton University W. Carlson General Landscaping
Brendan Davison University of Oklahoma
Robert W. Wogisch Landscape Contractor
Tristan Davison University of Oklahoma
Robert W. Wogisch Landscape Contractor
Ashley Downes Skidmore College Dave O'Donovan Excavating
Sawyer Haney Messiah University Wantage Excavating
Madeline Johnson Wesleyan University Bil-Jim Construction
Anthony Mazzarella Universal Technical Institute JESCO, Inc.
Grace Perna Belmont University KDP Developers
Madison Tallamy University of Delaware Wantage Excavating
Megan Vetter Colorado State University, College of Veterinary Medicine
George Vetter Landscaping
Cassidy Viersma Messiah University The Viersma Companies
McKenzie Viersma Binghamton University SUNY The Viersma Companies
NJLICA NEWS
PUBLIC WORKS CONTRACTORS REQUIRED TO REPORT CERTIFIED PAYROLL RECORDS ONLINE STARTING AUG. 15, 2024
On August 16, 2023, Governor Murphy signed into law S-1442/A-5345, which requires public works contractor registration and payroll certification for public works projects to be completed online. The Prevailing Wage Act requires that public works contractors and subcontractors submit to the public body or lessor which contracted for the public works project a certified payroll record on each public works project within 10 days of the payment of wages. Under the new law, starting on August 15, 2024, registered public works contractors in New Jersey must submit certified payroll reports online using the New Jersey Wage Hub, an online portal that the New Jersey Department of Labor says aims to make it easier for public work employers to comply with the Prevailing Wage Act.
By submitting certified payroll and/or contract/project details on the New Jersey Wage Hub, contractors and subcontractors working on public works projects comply with the Diane B. Allen Act. However, although the New Jersey Wage Hub will replace the need for paper certified payrolls in the future, to comply with the Prevailing Wage Act contractors and subcontractors must continue to submit the certified payroll records directly to the public body awarding the contract. The requirements are not retroactive; contractors only need to submit certified payroll records through the Hub for workweeks starting August 15.
To access the Wage Hub, contractors first need to create a myNewJersey account and register that account with the Department of Labor Employer Access system. The employer access system gives employers access to payment history, deficiencies, employer and worker contribution rates, and annual contribution rate notice. Once registered on the Wage Hub, contractors can submit and view project details and submit certified payroll. The New Jersey Wage Hub allows contractors the ability to submit certified payrolls in four ways:
1. Manually enter the data
2. Electronically fill out the MW-562 form (PDF) and upload it
3. Create a CSV template and upload it
4. Upload the certified payroll CSV file export from the Quantum Project Manager program.
The new requirements apply for any work which requires the submission of certified payrolls, which includes work being performed under a purchase order. The Department of Labor has made clear that “[i]f purchase orders are in any way connected (covered by a ‘blanket’ agreement, subject to an agreement to bill the public body at a certain rate, paid by the public body on the same check, etc.), or if it appears
that work is being divided into separate purchase orders for the purpose of evading prevailing wage applicability, the purchase orders would be viewed collectively, in reference to the prevailing wage threshold, and would be viewed as part of a single project, in reference to the certified payroll database.”
In recent months, the Department of Labor has been working to register public bodies on the Wage Hub. However, many public bodies have yet to register, and contractors should be aware that, despite this, it remains their responsibility to submit certified payrolls on the Hub starting on August 15.
Notably, the new online portal creates a New Jersey Certified Payroll Database which ensures that anyone in the state can access, search, and review certified payroll records submitted through NJ Wage Hub — with certain information redacted to protect privacy — instead of having to file official requests for these records. Accordingly, the new requirement significantly expands the information available to both the Department of Labor and the public, which will inevitably lead to greater scrutiny of contractors in New Jersey. This heightens the risk that the Department of Labor will use this information to investigate contractors and pursue enforcement actions.
It is imperative that New Jersey contractors engaged in public works ensure their certified payroll information is correct and that they avoid common errors such as those involving work classification, hours of work, annualization of benefits, and wage rates.
Contractors are strongly encouraged to review their prevailing wage compliance and reporting practices and if necessary, consult with experienced counsel. The Department of Labor has posted useful guides on how to sign up for the Wage Hub which can be accessed at https://www.nj.gov/ labor/wageandhour/prevailing-rates/wagehubfaq.shtml. In addition, Littler attorneys Russell McEwan and Jonathan Carrillo recently ran for a four week one-hour series detailing the N.J. Wage Hub registration and certified payroll reporting processes with representatives from the N.J. Department of Labor which can be accessed at https://beacon360.content.online/xbcs/S2372/catalog/product.xhtml?eid=59937.
New Jersey to Host 2027 LICA National Summer Conference
Welcome to the Garden State! NJLICA Executive Director Buddy Freund is proud to announce that New Jersey has been chosen as the host for the National LICA Summer Conference in July of 2027.
“Our intent is to provide the experience of a lifetime for attendees,” he says. “We will design a conference program that will make a difference in LICA members’ businesses, as well as provide opportunities for members and their families to visit selected life changing sites.”
Anyone interested in helping to plan this event by serving on a committee should reach out directly to Buddy Freund at buddy@ govisionstrong.com. Committees include, but are not limited to, Program Development Committee, Tour and Entertainment Committee, Sponsorship Committee, Associates Committee, and Marketing and Communication Committee.
“Currently, there are about 2,500 LICA members throughout the country,” Freund says. “We might not be able to get them all, but we will certainly let them know what they will be missing.”
Free Admission to Total Pro Expo: Pay Membership Dues by October 10
NJLICA is offering an incentive for members to pay their annual membership dues in a timely manner by offering free admission for two attendees to Total Pro Expo, NJLICA’s Winter Conference. Total Pro Expo is being held on January 28-29, 2025 at the New Jersey Convention and Exposition Center. This two-day conference attracts over 2,000 attendees and 150 vendors, including Foley Caterpillar, GT Mid Atlantic, Highway Equipment, Bobcat, JESCO, Hoffman Equipment, Cherry Valley Tractor, Vermeer North America, Woods Machinery, Coast Cities Truck & Equipment, Ransome Attachments, New Jersey One Call, Jersey Rents, Tri-State Safety Solutions, and Patriot Commercial Vehicle Inspections.
Membership renewals will be hard copy mailed the week of Labor Day
NJLICA Dues and ERISA Trust Clarification
The NJLICA dues year runs from September 1-August 31 of each year. Dues invoices are mailed to every NJLICA member, both NJDOL public works and non-public works contractors, and associate members, just after Labor Day. It is greatly appreciated if you pay your annual dues at that time.
NJDOL public works contractors are also required to make an annual contribution to the ERISA Trust Fund. This payment is legislated by the state of New Jersey and is due on the anniversary date of your company joining the Apprenticeship Program. These invoices are mailed a month prior to your anniversary date. Payment is required in order to remain compliant with the NJDOL and maintain your public works certificate.
Members that are participants in the United Fire Group Insurance Program will receive your renewal invoice in September as well. Payment is required at that time, not on the renewal date of your insurance. Payment is required to maintain your participation in the insurance program.
NJLICA Offers Increased Incentives to Apprentices
Apprentices in the NJLICA Apprenticeship Program for craft laborers and heavy equipment operators will be given a cash bonus at the completion of each year of their involvement in the program. Those cash incentives can reach $15,000 for laborers and $22,500 for heavy equipment operators.
Truck driver heavy apprentices will have the cost of their CDL class completely reimbursed upon completion of the program. Employers placing an employee in the NJLICA Apprenticeship Program will see their ERISA Trust contribution reduced by twothirds. For example, a $2,000 ERISA Trust contribution will be reduced to $666. Please see page 33 for more information.
Interested in Being More Involved?
NJLICA continues to look for motivated people to assume committee positions within the association. With an ever-increasing membership and an expanded event calendar, there are a variety of committees, including scholarship, events, membership, legislative, communication, to get involved.
89 cents a day!
Please take a close look at the Member Benefits on page 34. For a mere 89 cents a day, you have access to the monthly Employment Law Webinar Series, quarterly Prevailing Wage educational webinars, and the LICA Safety Portal, a library of 800 Safety Videos. We are now developing a financial series of webinars designed to help your business. Seriously, your dues of $325 ($0.89 a day) is worth so much more!
Low Boy & Easy Loader Trailers Experts in Road Building & Minerals
Certainty is what we have delivered to the New Jersey Construction industry for over 40 years.
Grassi’s Construction advisors and accountants provide the industry knowledge and guidance that construction professionals need to make confident business decisions.
NEW MEMBERS
THE NJLICA DUES YEAR RUNS FROM SEPT. 1-AUG. 31 OF EACH YEAR. THE 2024-25 DUES INVOICE WILL BE MAILED TO YOU JUST AFTER LABOR DAY. YOUR CONTINUED SUPPORT IS APPRECIATED.
GROWING BIGGER AND STRONGER
Contractor Members
EVERY DAY
AG Design and Management
Alex Giotis Lake Como, N.J.
AK Industrial Services LLC
Mark McLellan Everett, Mass.
Amaro Vaz Trucking
Amaro Vaz Colonia, N.J.
Armstrong, Inc.
Rick Armstrong Stirling, N.J.
ARS Landscaping Corp.
Brian Tercovich East Meadow, N.Y.
Bella Mechanical LLC
Xavier Pimento Flemington, N.J.
Bonsai Way LLC
Oneil Plummer Millville, N.J.
Castela Transportation Services Corporation
Bonnie Willson Somerville, N.J.
CJS Trucking LLC
Sonia Simoes Newark, N.J.
Concrete Washout Solutions
Lisa Weisse Jackson, N.J.
D.A. Pongrazzi Trucking LLC
Duane Pongrazzi Hillsborough, N.J.
Direct Path Trucking and Construction LLC
Jermaine Cornwall Bridgeton, N.J.
59 NEW MEMBERS IN THE SECOND QUARTER
Eaise Design & Landscaping, Inc.
Kevin Eaise
Monroeville, N.J.
E.J. Schuster’s Office Furniture
Travis Cunningham Lakewood, N.J.
Environmental Designs, Inc., dba The
Winterberry Group
Bob Nardello
Southington, Conn.
EZE Trucking LLC
Eli Webster Bridgeton, N.J.
Finest Property Maintenance LLC
Michael Iacono Manahawkin, N.J.
Freiberger Excavating LLC
Patrick Freiberger Allentown, N.J.
Garmendia Trucking LLC
Milton Garmendia Lopez Belleville, N.J.
Hallaton, Inc.
Kennedy Garber Sparks, Md.
ICCONINC LLC
Khayri Battle Wayne, N.J.
JEG, Inc.
Jorge Goni Bogota, N.J.
JMS Trucking
John Sorenson
Cape May Court House, N.J.
Joe Maggio, LLC
Joseph Maggio Sparta, N.J.
Joe Maggio Concrete Pumping LLC
Joseph Maggio Sparta, N.J.
Keepin it Savage LLC
Jose Vergara Washington, N.J.
Kodiak Services LLC
John Hackaspker Fair Lawn, N.J.
LBD Construction LLC
Lisa Jamison Millville, N.J.
LSG & Sons Trucking LLC
Lennox Grandison Bridgeton, N.J.
Lucius Transport LLC
Edwin Alvarez Bloomfield, N.J.
GET INVOLVED
THE NJLICA BOARD HAS POSITIONS AVAILABLE FOR THE FOLLOWING COMMITTEES:
and Live Auction
Marco Z Trucking LLC
Marco Zaruma Newark, N.J.
M.A.S. Masonry & Construction LLC
Mike Sacco Perrineville, N.J.
Matco Enterprises
Anthony Matina Hackensack, N.J.
Max Trucking LLC
Quian Davis Williamstown, N.J.
McCallum Trucking
Easton McCallum Vineland, N.J.
Messiah Construction LLC
Sharlon Soman Millville, N.J.
Mike and Sons Trucking Hauling LLC
Michael Roberts Egg Harbor City, N.J.
M. Matias Trucking, Inc.
Michael Matias Monroe, N.J.
MMT Landscaping LLC
Miguel Tavarez South Plainfield, N.J.
M. Walley Construction
Martin Walley Linwood, N.J.
North East Environmental LLC
Carlos Esquivel West New York, N.J.
NPT ALVES Contractor LLC
Nuno Alves Colonia, N.J.
On Point Excavation LLC
Jose Ruivo Union, N.J.
Penafiel Transport LLC
Edgar Penafiel Bloomfield, N.J.
Pro Rock Construction Services LLC
Salvatore Guy Pilesgrove, N.J.
Quality Enterprises (N.J.), Inc.
John Rocha South River, N.J.
Queens Construction Group LLC Ilda Ferreira South Amboy, N.J.
Rose Brand Wipers, Inc.
Joe Leduc Secaucus, N.J.
Santomauro General Contracting LLC
William Santomauro Jersey City, N.J.
Silver Fox Construction LLC Lewis Gross Merchantville, N.J.
Sun Valley Services LLC
Matthew Pennisi East Hanover, N.J.
Tino Trucking 2 LLC
Florentino Gonealves Edison, N.J.
Trek Works Corporation
Robel Habte Union City, N.J.
Trinity Paving & Sealcoating, Inc.
Stanley George Brick, N.J.
Unified Five Development LLC Amiras Chanchpara Hasbrouck Heights, N.J.
Valley Trucking & Excavating
Ryan Dougherty Oak Ridge, N.J.
WDL Trucking LLC
Willie Lang Millville, N.J.
Wickberg Marine Contracting, Inc.
Gina Wickberg Farmingdale, N.J.
Associate Member
Sitework Estimating Consultants
Todd Ressler Manahawkin, N.J.
VISION STRONG MANAGEMENT GROUP
Buddy Freund PO Box 166 Succasunna, NJ 07876 973-753-2800
buddy@govisionstrong.com govisionstrong.com
Vision Strong Management Group provides full-service association management services for associations, foundations, societies, and trade organizations. Add your company name to our Patron Directory. Contact NJLICA Executive Director Buddy Freund at 973-630-7600 or buddy@govisionstrong.com.
• Instill your company’s culture and retain workers
• Recruit and develop a diverse and highly skilled workforce
• Improve productivity, profitability, and your bottom line
• Reduce turnover, improve loyalty, and retain top talent
• Demonstrate investment in your community
Over the past 2 years LICA has implemented a quali ed DOL Apprenticeship program, for Truck Drivers (1 year) Laborers (2 years) and Heavy Equipment Operators (3 years) that we are very proud to o er to our members. Apprentices can help give your company the boost you didn't even know it needed. With an apprentice on hand to take on some of the smaller tasks, it frees up your more experienced sta to concentrate on key areas of work and spend time on other tasks – making your overall business practices more productive. LICA has also built into the program employer and employee incentives.
When enrolling an apprentice(s) in one of the trades listed above, and if you are contributing to the ERISA trust, this will decrease your required contribution to 1/3 of your cost. Example, If you are paying $2000 into the trust you will only be require to contribute $666.
Employers who sponsor apprentices gain skilled workers, reduce employee turnover, and improve productivity. Apprenticeships can also help businesses address any critical or expected shortages of skilled labor at a time when many businesses are reporting that they cannot nd skilled workers to ll jobs.
LICA recognizes that in ation is at a high, food and gas are expensive, just about every aspect of our everyday lives have a hefty price tag. erefore, we wanted to help our apprentices with the following:
Truck Drivers will receive:
• $3000 upon completion of the program, OR CDL class paid for by NJLICA.
• Available to the rst 12 who enroll in the program
Laborers will receive:
• $7,500 for the rst year completed (payment made upon start of second year)
• $7,500 for the second year completed (payment made upon graduation)
• Available to the rst 10 who enroll in the program
Heavy Equipment Operators will receive:
• $7,500 for the rst year completed (payment made upon start of second year)
• $7,500 for the second year completed (payment made upon start of third year)
• $7,500 for the third year completed (payment made upon graduation)
• Available to the rst 14 who enroll in the program
The beautiful Black Oak Golf Course was again the setting for the 36th Annual NJLICA Golf Classic. The significant rainfall from the day before did not affect the golfers or the course; Black Oak was in great playing condition! Golfers enjoyed the rolling hills and scenic mountain views of this western Morris County course. Light rain came late in day but fortunately it only lasted a few minutes. The team from Haskell Paving featuring Greg Bailey, Joe Mallory, Keith Spillane, and Rob Vernieri took home the team championship, dethroning the three-peat champions from Wallkill Group.
Premier Sponsors
Invitational Sponsors
North American
Prins Insurance
True & Associates—A World Company
United Fire Group
Golf Ball Launcher
North American Aggregates
Player Giveaway Sponsor
V.A. Spatz & Sons Construction
Dinner Sponsor
Premier Emissions & Safety Inspections
Beverage Cart Sponsors
J. Kramer Landscaping & Snowplowing
Salmon Bros.
Beverage Station Sponsors
Highway Equipment
Patriot Sawcutting
Fleet of Carts Sponsor
The True Agency
Registration Sponsor
Haskell Paving
Ball Sponsor
Foley Caterpillar
Putting Green Sponsors
Braen Stone
Icon Equipment Distribution
Mountain View Development
Driving Range Sponsors
Tilcon, Inc.
Wallkill Group, Inc.
Mathis Construction Co., Inc.
Lunch Sponsors
L.N. Rothberg & Son
Robert Wogisch Landscape Contractors
Hole in One Sponsor
True & Associates—A World Company
Closest to the Pin Sponsors
Brent Material Company
Let Us Brand You
Longest Drive Sponsors
Progressive Brick Shotmeyer Bros.
Tee and Green Sponsors
Art Coon Plumbing
Braen Stone
Castle Printing Ledgewood
Church Auto
Country Concrete
Croft Construction
D.P.S. Pump Service
Dave O’Donovan Excavating
Espo’s Tree & Crane Service
Gerrity Heavy Duty Sales
GT Mid Atlantic
James. R. Ientile
Kelly Donahue Contracting
L.N. Rothberg & Son
Lindabury, McCormick, Estabrook & Cooper, P.C.
Middleton & Company
North American Aggregates
Patrick DiCerbo—Northwestern Mutual
Peerless Concrete Products
Petrocon
Prins Insurance
Renda Roads
Salmon Bros.
Tri-State Safety Solutions
Twin Construction
Wantage Excavating
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