The New Jersey Department of Labor and Workforce Development issued stop-work orders to three contractors performing construction work at 88 Regent St. in Jersey City, the agency announced March 16.
Last summer, a multi-agency team of more than 60 investigators conducted an unannounced investigation at the site in response to allegations of worker misclassification. The investigation, which found that the three subcontractors owe a total of $19,800 in back wages, is ongoing.
As a result of a joint investigation with the Department of the Treasury and the Department of Banking and Insurance, NJDOL’s Division of Wage and Hour Compliance delivered stop-work orders to Kadex Ceiling Team Inc. of Elizabeth and Blue Star Drywall Corp. and Drywall Builders Corp., both of Plainfield.
Grand Street Construction of Jersey City, the general contractor of the private construction project, has not been cited.
Each subcontractor was also assessed a misclassification penalty equaling 5% of the workers’ gross earnings for the prior 12 months, totaling $19,520 to be paid to the affected workers. This penalty was implemented as part of a bill package signed into law two years ago to combat the illegal practice of misclassification.
“Any worker doing a job in our state deserves every penny and every benefit to which they’re entitled,” said Assistant Commissioner of Wage and Hour Compliance Joseph Petrecca in a prepared statement. “Our strengthened laws and tools to combat the illegal practice...
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