Contractors primarily based in Florida, North Carolina and Georgia have been ordered to cease work in New Jersey and now face penalties for allegedly misclassifying employees.
The New Jersey Division of Labor stated it had issued the orders after an investigation discovered that the contractors and subcontractors had classed employees as unbiased contractors, not staff, and didn’t present correct advantages and wages.
“Misclassification not solely prices our state’s workforce billions of {dollars} in very important funding to essential employee lifelines like unemployment insurance coverage, it strips employees of their rights to those advantages completely,” Joseph Petrecca, the assistant commissioner of wage and hour and contract compliance stated in an announcement.
Misclassifying employees has usually been used as a technique to keep away from or scale back employees’ compensation premiums for development corporations. The division stated the Division of Employees’ Compensation was nonetheless figuring out if the businesses had the correct comp protection.
The contractors had been cited underneath a 2020 New Jersey regulation designed to make it simpler to analyze and crack down on misclassification.
The division cited concrete contractor Carol Concrete of Lakeland, Florida, and 4 of its subcontractors that had been engaged on a Brookfield Properties challenge in Monroe Township. The state lifted the stop-work order in opposition to Carol after an audit discovered that subcontractors had employed the misclassified employees.
The NJDOL additionally cited:
- 5 Star Reinforcement of Carrollton, Georgia
- Greatest Hernandez Development of Charlotte, North Carolina
- Elite Professional Rebar of Stockbridge, Georgia
- Kico Development of Kissimmee, Florida
The subcontractors owe greater than $29,000 in again wages and penalties of greater than $42,000.
The overall contractor, ARCO Design/Construct Industrial Philadelphia, a division of Arco Design/Construct Corporations Inc., with places of work in King of Prussia, Pennsylvania, was not cited.
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