New Jersey Department of Labor and Workforce Development Issues Stop-Work Order to Used Car Dealer for Employee Misclassification

On March 1, 2024, the New Jersey Department of Labor announced that it had issued a stop-work order to a used card dealer for misclassifying workers. New Jersey has a unique law that allows the New Jersey Department of Labor to issue stop-work orders to employers that violate certain wage and hour laws, including misclassifying workers as independent contractors.

TRENTON – Investigators from the New Jersey Department of Labor and Workforce Development’s (NJDOL) Division of Wage and Hour and Contract Compliance issued the following stop-work order on February 15, 2024:

Employer: Dena’s Auto

Work Location: 1010 N. Whitehorse Pike, Stratford, NJ 08084

Nature of Work: Used car sales

SWO Category: Wage Collection

Details: NJDOL’s Division Wage and Hour and Contract Compliance found back wages owed to a worker at Dena’s Auto. All back wages and fees were paid at the time the stop-work order was presented to the employer, thus lifting the stop-work notice.

Monetary Assessments: $1,345

Workers Affected: 1

NJDOL has issued more than 150 stop-work orders since these powers were expanded in July 2019.

Stop-work orders are initiated by NJDOL to halt work being performed in a manner that exploits workers, or is otherwise noncompliant with state laws and regulations. In Wage Collection cases, an award is granted to affected workers in a wage collection proceeding. If the employer fails to pay the award within the statutory time period, a stop-work order may be issued. The stop-work order remains in place until the award is paid in full by the employer.

NJDOL continues to monitor locations where stop-work orders have been issued. Workers are to be paid during the time the stop-work order is in effect, for a period of up to 10 days. The stop-work order may be lifted if and when any remaining back wages and administrative fees have been paid and all related issues have been resolved.

For more information on worker benefits and protections, please visit myworkrights.nj.gov.

Source: Department of Labor and Workforce Development | NJDOL Issues Stop-Work Order to Stratford Used Car Dealer for Employee Misclassification and Wages Owed

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