Client Alert: Pay-to-Play in New Jersey: Do You Know How to Play by the Rules?

Although most of the country is focused on the presidential election and, according to the New Jersey Election Law Enforcement Commission database, only two candidates have formally declared a run for Governor, now is the time for companies to focus on their New Jersey political-activity compliance. This week marks the start of the 18-month period before the inauguration of New Jersey's next governor. Under the State's stringent pay-to-play laws, a contribution made during this period may jeopardize your company's eligibility for contracts with the State of New Jersey for up to 5½ years. This means that, as of July 16, 2016, if your company or even one covered individual (including officers, shareholders, equity partners or their spouses, civil-union partners and resident children) contributes more than $300 to a gubernatorial candidate or certain other political recipients, your company could be declared ineligible for contracts with the State of New Jersey through January of 2022!