Allows certain parties to sue construction company for commission of or alleged commission of various actions.

A5052

ASSEMBLY, No. 5052

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 14, 2026

Sponsored by:

Assemblywoman� LINDA S. CARTER

District 22 (Somerset and Union)

SYNOPSIS

���� Allows certain parties to sue construction company
for commission of or alleged commission of various actions.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning construction company malfeasance and
supplementing P.L.1960, C.39 (C.56:8-1 et seq.).

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� a.� A construction
company, contractor, or subcontractor may bring an action in any court of
competent jurisdiction against another construction company, contractor, or
subcontractor for:

���� (1)�� wage or benefit theft;

���� (2)�� misclassification of
employees;

���� (3)�� tax or insurance fraud;

���� (4)�� manipulation of the
process by which the construction company, contractor, or subcontractor submits
bids for work;

���� (5)�� falsification of
documentation, including falsely claiming certification not obtained; and

���� (6)�� any action or attempt of
an action deemed in violation of the consumer fraud act pursuant to P.L.1960,
c.39 (C.56:8-1 et seq.) or the �New Jersey Antitrust Act,� P.L.1970, c.73
(C.56:9-1 et seq.).

���� b.��� The construction
company, contractor, or subcontractor shall notify:

���� (1)�� the potential defendant
of the action at least 30 days prior to the commencement of the action; and

���� (2)�� the Department of Labor
and Workforce Development when the company, contractor, or subcontractor brings
an action.

���� c.���� The court shall award a
prevailing plaintiff in the action reasonable attorneys� fees and costs,
including expert witness fees.�

���� d.��� As used in this act:

���� �Construction company� means a
sole proprietor, limited liability company, corporation, or any other type of
business entity organized under the law of the State that builds, renovates, or
maintains any building, road, bridge, private residence, or other structure in
the State.

���� �Contractor� means the same as
the term is defined pursuant to section 3 of P.L.1999, c.238 (C.34:11-56.50).

���� �Subcontractor� means the same
as the term is defined pursuant to section 2 of P.L.1987, c.150 (C.34:11A-2).

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� This bill grants a
construction company, contractor, or subcontractor the right to bring an action
in any court of competent jurisdiction against another construction company,
contractor, or subcontractor for such acts or alleged acts to include: 1) wage
or benefit theft; 2) tax or insurance fraud; or 3) actions deemed in violation
of the �New Jersey Antitrust Act� or the consumer fraud act.� The construction
company, contractor, or subcontractor is to notify: 1) the potential defendant
of the action at least 30 days prior to the commencement of the action; and 2)
the Department of Labor and Workforce Development when the company, contractor,
or subcontractor brings an action.� The court is to award a prevailing
plaintiff in the action reasonable attorneys� fees and costs, including expert
witness fees.