New Jersey A 5052: Allows certain parties to sue construction company for commission of or alleged commission of various actions.

Bill Text

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.