Atlantic County Adopts New Labor Policy for Construction Projects Over $1 Million

Commissioner June Byrnes says the measure will strengthen oversight and create jobs, but questions remain about its impact on contractors, competition and taxpayer costs.

ATLANTIC COUNTY, N.J. — Atlantic County has approved a new project labor agreement policy for public construction projects exceeding $1 million, joining a growing number of New Jersey counties expanding the use of labor agreements on taxpayer-funded construction.

The Atlantic County Board of County Commissioners approved Resolution 464 on August 18, with one dissenting vote, according to a published summary of the meeting.

The resolution was sponsored by Commissioners Art Schenker, June Byrnes, Andrew Parker and John Risley.

The policy could affect how contractors bid on future county construction projects, the employment conditions they must follow and the participation of union and nonunion workers.

During an October 21 interview on Klein Time with Dan Klein on News Talk 1400 & 92.3 WOND, Byrnes discussed the policy and described it as an effort to improve transparency and accountability.

"We all have an open line with our unions, but he brought it to administration and to the county commissioners to just open it up for better transparency with who we're hiring for our county projects," Byrnes said, referring to Schenker.

"It's just a feasibility project that will help in creating more jobs for everybody. And moving forward, I think everybody is going to be happy with it."

What Is a Project Labor Agreement?

A project labor agreement, commonly known as a PLA, is a preconstruction collective bargaining agreement that establishes labor conditions for a particular construction project.

The agreements can address wages, benefits, work schedules, hiring procedures, apprenticeship participation and methods for resolving labor disputes.

They also commonly include provisions prohibiting strikes and work stoppages during construction.

Supporters argue that these agreements provide a dependable supply of skilled workers, establish consistent employment standards and reduce the possibility of labor disputes delaying major projects.

Opponents question whether requiring contractors to follow negotiated labor rules can discourage nonunion businesses from bidding and potentially increase construction costs.

The agreements do not necessarily prohibit nonunion contractors from participating. However, contractors awarded work on a PLA-covered project generally must comply with the agreement's terms.

The specific requirements depend on the individual agreement.

Byrnes Credits Schenker With Advancing Policy

Byrnes said Schenker, who has a union background, helped move the proposal forward after years of discussion.

"This was brought to our attention through Art Schenker," Byrnes said. "It's been discussed for apparently several years prior to me being on the Commissioner Board."

She said the goal is to improve oversight of county projects while supporting employment opportunities.

"It will bring in on time, under budget, done right projects," Byrnes said.

"I'm not saying we don't do that currently, but it just gives a little bit more oversight on what is going on."

Klein questioned whether the agreement might increase the cost of public construction, noting that project labor agreements have generated controversy elsewhere.

Byrnes disagreed.

"No, it's going to be more affordable and more user-friendly," she said.

However, the interview did not include cost estimates or a comparison of projects completed with and without project labor agreements.

Whether Atlantic County's policy ultimately saves money, increases costs or has little financial effect will depend on how the agreements are implemented and how contractors respond.

New State Law Opened the Door

Atlantic County's decision follows a significant change in New Jersey law earlier this year.

On January 20, 2026, then-Gov. Phil Murphy signed legislation allowing counties, municipalities, school districts and fire districts to require project labor agreements on public works projects regardless of their cost.

Previously, New Jersey law generally restricted such agreements to public works projects costing at least $5 million.

The change, enacted as P.L. 2025, Chapter 327, eliminated that minimum for the specified local government entities.

That gave counties greater flexibility to decide when project labor agreements should be required.

Atlantic County's reported $1 million threshold is therefore a local policy decision, rather than a minimum imposed by the state.

The law's expansion has prompted similar action elsewhere in New Jersey.

How Atlantic County Compares With Other Counties

Atlantic County is not alone in expanding the use of project labor agreements.

In July, Union County announced that it had lowered its threshold for county construction projects from $5 million to $3 million.

Union County officials said the change would increase opportunities for skilled trades workers and apprentices while supporting consistent construction standards.

Passaic County has also moved to establish a $3 million threshold, with provisions allowing the county to consider project labor agreements on smaller projects.

Gloucester County adopted a resolution in May authorizing project labor agreements on certain public works projects valued above $200,000.

Atlantic County's reported $1 million threshold falls between those approaches.

The different thresholds illustrate how New Jersey's revised law has given counties greater discretion in establishing their construction labor policies.

However, the dollar thresholds alone do not establish how restrictive each county's agreements will be. The actual terms governing hiring, contractor eligibility and exceptions can vary.

What About Nonunion Contractors?

One of the most important questions is how Atlantic County's new policy will affect construction companies that do not ordinarily employ union labor.

Under New Jersey's project labor agreement framework, nonunion contractors can participate in covered projects, but they may be required to follow the agreement's labor conditions.

Those requirements can affect hiring procedures, benefit contributions and workforce arrangements.

For some contractors, participating in a project labor agreement may require changes to their usual business practices.

For others, the agreements can provide access to an established pool of trained workers and predictable labor conditions.

The potential effect on bidding competition is a recurring point of disagreement between labor organizations and some construction industry representatives.

In its explanation of project labor agreements, the New Jersey Schools Development Authority states that contractors do not have to be union signatories to compete for work on its PLA-covered projects.

However, that agency's agreements include specific labor requirements that participating contractors must follow.

Atlantic County's precise requirements cannot be determined solely from the published meeting summary.

The complete text of Resolution 464 and any accompanying policy documents would be needed to establish whether exceptions are available, how nonunion contractors are treated and what conditions apply to subcontractors.

What Could This Mean for Taxpayers?

The policy's financial impact is another important question.

Atlantic County oversees construction and maintenance involving roads, bridges, public buildings and other infrastructure.

Projects exceeding $1 million can represent substantial taxpayer investments.

Supporters of project labor agreements argue that labor stability and a predictable workforce can help prevent costly delays and disputes.

Critics contend that if some contractors choose not to bid because of the labor requirements, reduced competition could increase project prices.

Neither outcome is guaranteed.

Determining the policy's effect would require examining the number of contractors bidding on covered projects, the prices of winning bids, construction schedules and final project costs.

It is not yet clear whether Atlantic County conducted a formal cost-benefit analysis before adopting Resolution 464.

The published meeting summary also does not identify which commissioner cast the dissenting vote or explain the objection.

Those details would help residents better understand the reasoning behind the decision.

A Significant Change in County Construction Policy

Although the resolution was approved in August, Byrnes' October 21 interview provided additional insight into the thinking of one of its sponsors.

She characterized the policy as a way to strengthen oversight, improve project delivery and create employment opportunities.

But the broader questions remain.

Will more Atlantic County residents obtain construction jobs or apprenticeships as a result?

Will the policy attract enough qualified contractors to maintain competitive bidding?

And will the county's future construction projects be completed on time and within budget?

The answers will become clearer as Atlantic County applies the policy to upcoming projects.

For now, the county has taken a significant step in determining how labor agreements will be used on public construction, with potential implications for workers, contractors and taxpayers throughout Atlantic County.