Multi-Agency Investigation Results in Assessing 20 Contractors More than $1.3M in Back Wages and Penalties
TRENTON – A unique partnership between the New Jersey Departments of Labor and Workforce Development (NJDOL), Treasury, Banking and Insurance, and the Office of the Attorney General (OAG) has resulted in the assessment of more than $1.3 million in back wages and penalties to 20 contractors performing construction work at 88 Regent Street in Jersey City, where a multi-agency team of more than 60 investigators conducted an unannounced sweep in summer 2021 in response to allegations of workers being misclassified. Grand Street Construction, LLC of Jersey City, was the owner/ general contractor on the project.
The joint investigation, the first of its kind among cooperating state agencies, started shortly after Governor Murphy signed a second package of misclassification bills into law in July 2021. NJDOL’s Division of Wage and Hour Compliance joined staff from the Treasury’s Division of Taxation, the Department of Banking and Insurance and the Attorney General’s Office to follow up on complaints of workers being misclassified as independent contractors or paid off-the-books while working at the Jersey City construction site. Allegations also included workers not being paid properly for overtime, and employers failing to pay appropriate taxes on purchased construction materials and not carrying workers’ compensation insurance.
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