The New Jersey Department of Labor on Wednesday announced it has issued 71 stop-work orders in the three years since Gov. Phil Murphy signed a law expanding its power to halt work at a worksite. It has recovered nearly $1 million in back wages owed to 235 workers. The most common violations leading to stop-work orders are employers not having workers’ compensation insurance or misclassifying employees as independent contractors, according to the department.
Stop-work orders have been used to shut down work sites of all types, including construction sites, restaurants, an internet radio station and medical offices. However, 57 of the 71 stop-work orders issued over the past three years involved construction jobs. Usually, stop-work orders are resolved in a few days and are often resolved on the spot, according to the department.
Most recently, the department announced Wednesday a stop-work order against Maya Concrete LLC after finding five employees were misclassified as independent contractors. Maya, based in Charlotte, North Carolina, was performing work at a warehouse under construction in Freehold, New Jersey.
In addition, the department reported on a separate independent contractor misclassification penalty that took effect last year requiring employers to pay misclassified workers an additional 5% of their gross wages from the previous 12 months. Under this law, the department has recovered $92,500 divided among 100 workers.