Staff Reports
New Jersey’s latest power play for union clout just ran into a legal wall. Earle Asphalt Company filed a federal lawsuit on April 30, 2026, saying the state and local officials forced unions and race‑and‑sex hiring targets on contractors. The complaint calls those rules unconstitutional and points to real dollar harm for taxpayers. If you like paying more for less, you’ll adore this policy.
What the lawsuit challenges
Earle Asphalt sued the New Jersey Turnpike Authority, Evesham Township, Ocean County, and NJTA Executive Director Kris Kolluri in U.S. District Court (case 3:26-cv-04860). The company says two state rules are illegal: the expanded authority for project labor agreements (PLAs) and the “targeted employment goals” that force contractors to track and hit race‑ and sex‑based quotas. Earle is represented by the Pacific Legal Foundation and the Wisconsin Institute for Law & Liberty.
The concrete example: Evesham Township and the $153,897.87 bill
The complaint gives a clear, simple example of how this policy costs taxpayers. Earle submitted the lowest bid for a road job: about $1.46 million. One week later the township demanded a PLA. Officials threw out the bids and re‑bid the job with the PLA requirement. The new low bid was about $1.62 million — roughly $153,897.87 more. Same roads, higher price. That’s the price New Jersey taxpayers pay when politics replaces competition.
Why this matters: Constitution and competition
The lawsuit raises big constitutional questions. Earle argues the targeted employment goals violate the Fourteenth Amendment’s Equal Protection Clause and federal civil‑rights law because they impose race‑ and sex‑based hiring rules. It also says PLAs force private businesses to associate with and fund unions, running headlong into the First Amendment’s protection against compelled association. Beyond constitutional rights, the practical effect is fewer bidders, less competition, and higher costs for local governments and taxpayers.
Political fallout and what to watch next
This fight lands squarely in Trenton’s lap. The PLA expansion was pushed through during recent legislative action, and Governor Mikie Sherrill’s administration now faces a major test over whether local entities can require PLAs on small projects. Expect unions and labor allies to defend these mandates as diversity or stability measures. Expect Earle and its lawyers to press for a quick injunction. The court’s next moves — motions to dismiss, requests for emergency relief, and defendants’ statements — will shape whether this becomes a narrow win for one firm or a broad victory for contractors and taxpayers statewide.
At bottom, this case is about two things: whether government may force businesses to hire by quota and bow to union hiring halls, and whether taxpayers will keep footing the bill for politically driven contracting. If you believe in merit hiring and open competition, keep an eye on this lawsuit. It may matter to your town’s next pothole repair — and to your wallet.
