NJDOL Issues Stop-Work Orders to Five Out-of-State Contractors for Misclassifying Workers on Construction Site
New Penalty Returns an Additional $6K to Affected Employees
TRENTON – The New Jersey Department of Labor and Workforce Development (NJDOL) has issued stop-work orders to five out-of-state contractors – from Florida, Georgia, and North Carolina – who misclassified workers performing construction work in New Jersey
The NJDOL’s Division of Wage and Hour Compliance investigated concrete and masonry contractor Carol Concrete LLC of Lakeland, Fla., who had hired four subcontractors for work at Brookfield Properties, in Monroe Township.
The subcontractors – 5 Star Reinforcement LLC of Carrollton, Ga., who erected steel framework; Best Hernandez Construction LLC of Charlotte, NC., who installed metal rebar; Elite Pro Rebar LLC of Stockbridge, Ga.; who also installed metal rebar; and Kico Construction LLC of Kissimmee, Fla; who did caulking work on warehouse walls – were each cited for misclassifying workers, and found to owe a total of $29,658 in back wages.
Each subcontractor was also assessed a misclassification penalty equaling five percent of the workers’ gross earnings for the prior 12 months, totaling $5,954, to be paid to the affected workers.
This penalty was implemented as part of a bill package signed into law by Governor Murphy in January 2020 to combat the illegal practice of misclassification.
“Misclassification not only costs our state’s workforce billions...
Welcome to Reality Check, NewsGuard’s nonpartisan newsletter that tracks the false claims and conspiracy theories that shape our world — and who’s behind them. Please support us by becoming a premi...