NJDOL Issues Stop-Work Orders to Three Contractors as Multi-Agency Investigation Continues
TRENTON – The New Jersey Department of Labor and Workforce Development (NJDOL) recently issued stop-work orders to three contractors performing construction work at 88 Regent Street in Jersey City, where last summer a multi-agency team of more than 60 investigators conducted an unannounced investigation in response to allegations of worker misclassification. The investigation 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. The general contractor of the private construction project, Grand Street Construction of Jersey City, has not been cited.
The three subcontractors were found to owe a total of $19,800 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 $19,520 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.
“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...
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