Since its powers were expanded to halt work on job sites under certain circumstances in 2019, the New Jersey Department of Labor and Workforce Development (NJDOL) has issued more than 110 stop-work orders and assessed more than $2.7 million in back wages owed to affected workers, liquidated damages and penalties, the department announced this week.

In 2021, those controls were further expanded by Gov. Phil Murphy, permitting the NJDOL to issue stop-work orders to all work sites where an employer was found to be violating the law.

NJDOL’s Division of Wage and Hour and Contract Compliance typically enforces these powers, with the authority to halt work at any public or private worksite – both construction and non-construction – when an investigation finds evidence that an employer has violated state wage, benefit or tax laws.

Examples of violations 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, according to NJDOL.

Since 2019, 87 of the 110 stop-work-orders involved construction sites, with 44 being public works projects. Investigations have so far led to 11 contractors being debarred from engaging in future public works jobs.

“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 Murphy in a press release. “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 employees,” 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.”

Education and prevention

The labor commissioner added that 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,” said Asaro-Angelo. “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.”

The efforts were applauded by the New Jersey Building and Construction Trades Council and the Associated Construction Contractors of New Jersey.

“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 health care coverage, workers’ comp, retirement plans, and other important benefits. 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.”

The full list of stop-work orders can be found here.