NJDOL: Evidence of worker exploitation stops work at 110 job sites

NEW JERSEY – 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,” Murphy said. “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.

“Our hat is off to the New Jersey Department of Labor for using the strongest weapon in its arsenal to crack down on bad actors who cheat the system in the construction industry,” said Bill Mullen, president of the New Jersey Building and Construction Trades Council. “Stop-work orders are a powerful tool needed to ensure that construction workers are protected from contractors who exploit them and cheat them out of wages and benefits they have legally earned. We want to see more leaders in Trenton taking firmer stances like this that the State of New Jersey will not tolerate abuses to workers or the law.”

“ACCNJ commends the New Jersey Department of Labor for continuing to level the playing field for New Jersey’s construction industry by enforcing wage and hour laws,” said Jack Kocsis, CEO of the Associated Construction Contractors of New Jersey. “When employers exploit their workers the State loses millions in tax revenue, reputable contractors lose out on opportunities to bid, and the workers themselves are left without the protection of healthcare coverage, workers’ comp, retirement plans, and other important benefits,” Kocsis continued. “The structure in place ensures a level playing field by increasing enforcement, improving interagency communication, and educating employers and workers to stand against tactics that hurt workers and the citizens of New Jersey. We are always happy to work with our State’s leadership to continue to raise the standards of construction in New Jersey.”

Stop-work order investigations have resulted in the assessment of nearly $3 million in administrative fees and penalties across all employers involved.

Of the 110 stop-work orders issued since 2019, 87 involved construction jobs, with 44 being public works projects. Stop-work order investigations have so far led to 11 contractors being debarred from engaging in future public works jobs.

In addition to responding to worker complaints, NJDOL last year added Strategic Enforcement to its toolbox, focusing on industries with a history of non-compliance and whose employees are less likely to file complaints. The department has increased outreach efforts to connect with workers and employers as part of its Strategic Enforcement initiatives. A recent Strategic Enforcement effort concentrating on the drywall industry resulted in the issuance of 10 stop-work orders at one Raritan construction site.

For an enhanced graphic of each employer issued a stop-work order, as well as the job site location where the order was issued, click here.

Below is a list of the number of stop-work orders issued per county:

Below is a full list of Stop-Work Orders issued by NJDOL and the cities where the violation(s) took place: