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Evidence of Worker Exploitation Stops Work at 110 Job Sites

New Jersey Department of Labor & Workforce Development
FOR IMMEDIATE RELEASE
July 11, 2023

TRENTON – In the four years since Governor Murphy expanded the New Jersey Department of Labor and Workforce Development’s (NJDOL) powers in 2019 to halt work on job sites when there is strong evidence of worker exploitation, over 110 stop-work orders have been issued and more than $2.7 million in back wages owed to affected workers, liquidated damages, and penalties have been assessed.

In 2021, Governor Murphy further boosted these powers, permitting stop-work orders to be applied to all work sites of an employer found to be in violation of the law.

“Since the beginning of our Administration, we have been dedicated to respecting, defending, and upholding the rights of all New Jersey workers, who are the lifeblood of our economy,” said Governor Murphy. “These expanded powers have led to over a hundred stop-work orders in just the past few years, advancing our commitment to stronger and fairer worker protections.”

“Having the authority to shut down work as soon as wrongdoing is identified has exponentially strengthened the department’s effectiveness at enforcing our state’s wage and hour laws and protecting workers and law-abiding employers,” said Labor Commissioner Robert Asaro-Angelo. “We’ve made it clear: If we find you are cheating workers, we will halt your business operations, and in many cases, you will be told to leave the job by the general contractor or contracting authority.”

“A vast majority of New Jersey employers follow the law and do right by their workers, but NJDOL wants to ensure all businesses are following the law and treating workers fairly,” Asaro-Angelo added. “It’s not just about stopping the violations in progress. There is also an educational component to prevent these issues from happening in the first place.”

NJDOL’s Division of Wage and Hour and Contract Compliance has the authority to immediately halt work at any public or private worksite – both construction and non-construction – when an investigation finds evidence an employer has violated state wage, benefit or tax laws. Examples include: misclassifying employees as independent contractors; not having appropriate workers’ compensation insurance; failing to pay prevailing wage or overtime; or paying workers partially, late, or off the books.

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‘Stop Work Order’ Signs Posted On Controversial Building Trades High School Construction Site

By MARK J. BONAMO AND TOM WIEDMANN
Published – September 8, 2022

NEWARK, NJ — State Department of Labor and Workforce Development officials have posted “Stop-Work Order” signs on the construction site of the new Newark High School of Architecture & Interior Design.

Work at the site appeared to come to a halt Thursday, except for some cleanup work activity. DOL officials said that stop-work orders were issued to the general contractor and subcontractor performing work at 155 Jefferson St., and to the developer of the property, slated to be the site of the district’s Newark High School of Architecture & Design.

Investigators from the DOL’s Division of Wage and Hour and Contract Compliance delivered the stop-work notices to a New York-based general contractor Townhouse Builders Inc., subcontractor Dimension Contractors LLC of Newark, and developer Summit Assets.

In addition, officials said the stop-work orders were issued for workers on-site not being paid the state prevailing wage rate, neither the developer – which had workers at the site – nor the subcontractor is registered to perform public work in New Jersey. Summit Assets was also cited for misclassifying workers as independent contractors. Townhouse Builders was cited for employing non-registered contractors on a prevailing wage job site.

“Our strongest enforcement tool is to stop work immediately on a public construction site when workplace violations are egregious and readily apparent,” said Labor Commissioner Robert Asaro-Angelo. “Performing public work is a privilege, not a right, and we will not tolerate abuses to workers or the law.” …

TAPinto Newark first reported that Laborers Eastern Region Organizing Fund, or LEROF—the organizing arm of Laborers’ International Union of North America (LIUNA)—filed a complaint with the state Department of Labor and Workforce Development regarding the project, alleging laborers are not being paid prevailing wages as required by law and were working in unsafe conditions.

LEROF Director David Johnson commended the DOL’s decision to issue the stop-work orders.

“We were appalled by what happened [at the site],” Johnson told TAPinto Newark. “We are a union, and we are about educating non-union laborers about their rights. We’re very pleased that after these workers were brought before the Department of Labor to give testimony. It seemed like today, the DOL believed what the workers said, and they acted today.”

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New Jersey DOL cites, fines Katerra sub for wage violations (NJ)

AUTHOR: Kim Slowey
PUBLISHED: Feb.18, 2020

Dive Brief:

  • The New Jersey Department of Labor & Workforce Development (NJDOL) has issued a stop-work order to subcontractor REB Construction and Maintenance LLC for failure to take the proper deductions from its employees’ pay and for not keeping the required payroll records related to work performed on a project in Jersey City, New Jersey. The department also fined REB $19,250. …
  • The authority that the NJDOL has to stop work on a construction project when significant pay, benefits or other workers’ rights violations are documented is part of new legislation based on the July 2019 recommendations of New Jersey Gov. Phil Murphy’s task force on employee missclassification.

Dive Insight:

Stop-work orders (A5838): The NJDOL can force an employer to stop work if it determines that the employer violated state wage, benefit or tax laws.

(Read More)

New Jersey DOL cites, fines Katerra sub for wage violations (NJ)

AUTHOR: Kim Slowey
PUBLISHED: Feb. 18, 2020

Dive Brief:

  • The New Jersey Department of Labor & Workforce Development (NJDOL) has issued a stop-work order to subcontractor REB Construction and Maintenance LLC for failure to take the proper deductions from its employees’ pay and for not keeping the required payroll records related to work performed on a project in Jersey City, New Jersey. The department also fined REB $19,250. …
  • The authority that the NJDOL has to stop work on a construction project when significant pay, benefits or other workers’ rights violations are documented is part of new legislation based on the July 2019 recommendations of New Jersey Gov. Phil Murphy’s task force on employee missclassification.

Dive Insight:

Stop-work orders (A5838): The NJDOL can force an employer to stop work if it determines that the employer violated state wage, benefit or tax laws.

(Read More)

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Singleton Bill to Help Strengthen Prevailing Wage Clears Senate (NJ)

December 17, 2018, 5:42 pm

TRENTON – Legislation sponsored by Senator Troy Singleton, which would allow the issuing of stop-work orders for failure to pay the prevailing wage, cleared the Senate today.

“Before all else, we must protect the rights of the men and women who are working hard each and every day to earn a decent and fair living,” said Senator Singleton (D-Burlington). “New Jersey has set a high standard for how we treat our workers, and if you contract with the state on public works projects, you must be prepared to abide by that standard.”

The bill, S-2557, would permit the Commissioner of the Department of Labor and Workforce Development to issue a stop-work order against an employer upon determining an employer has paid a worker less than the prevailing wage.

The stop-work order would apply to every site where the violation continues to occur. It could only be lifted by the commissioner if the department finds the employer has agreed to pay future wages at the required rate, return any back-wages owed to workers and pay any penalty assessed by the department. The commissioner may also require the employer to file periodic reports for two years certifying its compliance with the prevailing wage law as a condition of lifting the order.

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(View PDF Copy of Bill)

Singleton Bill to Help Strengthen Prevailing Wage Clears Committee (NJ)

December 11, 2018, 11:05 am

TRENTON – Legislation sponsored by Senator Troy Singleton which would allow the issuing of stop-work orders for failure to pay the prevailing wage cleared the Senate Budget and Appropriations Committee.

“Before all else, we must protect the rights of the men and women who are working hard each and every day to earn a decent and fair living,” said Senator Singleton (D-Burlington). “New Jersey has set a high standard for how we treat our workers, and if you contract with the State on public works projects, you must be prepared to abide by that standard.”

The bill, S-2557, would permit the Commissioner of the Department of Labor and Workforce Development to issue a stop-work order against an employer upon determining that an employer has paid a worker less than the prevailing wage. The stop-work order would apply to every site where the violation continues to occur. It could only be lifted by the commissioner if the Department finds the employer has agreed to pay future wages at the required rate, return any back-wages owed to workers and pay any penalty assessed by the Department. The commissioner may require the employer to file periodic reports for two years certifying its compliance with the prevailing wage law as a condition of lifting the order.

Under the bill, the commissioner would be allowed to investigate the wage records of an employer in the construction industry upon the complaint of an employee for failure to pay required wages and contributions. The commissioner would be permitted to issue subpoenas in connection with the investigation and fine individuals who willfully hinder it.

If an employer does not stop business despite being issued a stop-work order, the commissioner would be permitted to assess a civil penalty of $5,000 per day.

The bill was released from committee by a vote of 11-0, and next heads to the full Senate for further consideration.

(See Article)

(See Copy of Bill)