TRENTON, N.J. — Marking the six-year anniversary of the state Task Force on Employee Misclassification’s landmark report, the New Jersey Department of Labor and Workforce Development (NJDOL) is highlighting legislative and enforcement gains that have strengthened protections for workers and law-abiding employers.
Governor Phil Murphy, with bipartisan legislative support, has signed two comprehensive packages since the report’s release — six bills in January 2020 and four more in July 2021 — that provide NJDOL with enhanced tools to crack down on the misclassification of employees as independent contractors.
“Hardworking New Jersey workers should not be kept from receiving the pay and benefits they deserve,” Governor Murphy said. “Protecting our workers has always been a top priority of our administration. We’ll keep fighting against those who exploit and cheat them.”
Employee misclassification can strip workers of rights such as minimum wage, overtime, workers’ compensation, and paid leave. It also gives unscrupulous businesses an unfair advantage over employers who comply with the law.
Labor Commissioner Robert Asaro-Angelo emphasized that the laws not only penalize bad actors but also aim to support honest employers and protect legitimate freelancers. “These laws were never about simply going after bad actors but propping up and supporting fair employers who play by the rules,” he said.
Key measures implemented since the report include:
- Creation of the Office of Strategic Enforcement and Compliance
- A first-of-its-kind misclassification penalty law
- Establishment of a payroll tracking database
- Expanded authority to issue stop-work orders
Since September 2021, nearly $11 million has been assessed to benefit approximately 13,000 misclassified workers. In total, NJDOL has collected roughly $84 million in back wages and penalties since 2018, including $19 million in 2024 and $37 million assessed this year for nearly 8,500 workers.
Audits in 2018 uncovered over 12,300 misclassified workers, more than $460 million in underreported wages, and $14 million in lost unemployment and disability contributions — all from just 1% of businesses.
The Stop-Work Order authority has been exercised nearly 200 times since 2019, helping secure immediate relief for affected employees. An additional 90 notices have led to prompt employer compliance and payments.
To further deter violations, NJDOL launched the Workplace Accountability in Labor List (WALL), publicly naming 280 businesses that collectively owe more than $26 million in back wages, taxes, fines, and penalties. These companies are barred from contracting with public entities until they meet their obligations.
NJDOL remains committed to employer education and helping businesses comply with labor laws. For more information, visit MyWorkRights.nj.gov.
