Category Archives: Underground Construction Economy

Feb 10 2020
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NJDOL Issues Stop-Work Order for Wage Violations

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NJ Labor Department Issues Stop-Work Order for Wage Violations, Misclassification of Workers

TRENTON – A subcontractor on a construction job in Jersey City, who paid some workers by check but failed to take out deductions or keep payroll records, was issued a stop-work order by the Department of Labor and Workforce Development, which now has the authority to stop an employer from working on a job site when significant pay, benefits, or other workers’ rights violations are documented.

The subcontractor, REB Construction and Maintenance LLC of Bound Brook, was issued a stop-work order on Jan. 31 for work at 100 …

Nov 19 2019
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Contractor Sentenced to Prison for Falsifying Records

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CONTRACTOR SENTENCED TO PRISON FOR FALSIFYING RECORDS TO CHEAT WORKERS OUT OF $155,000 BY NOT PAYING PREVAILING WAGES  Many of the employees he cheated are believed to be undocumented immigrants

As released by Insider NJ on September 6, 2019.

TRENTON – Attorney General Gurbir S. Grewal announced that an Ocean County construction contractor was sentenced to prison today for purposely not paying prevailing wages on a government contract valued over $75,000.  As part of his criminal activity, the contractor falsified payroll records for the public contract to cover up the fact that he paid most of his employees only a …

Nov 18 2019
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Coalition of Trade Associations Formed

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Earlier this year our Executive Director, Carol Ciesielski, formed a Coalition of Trade Associations to address misclassifying employees as independent contractors and the entire underground construction economy in New Jersey.

In addition to Masonry Contractors of New Jersey, the other associations that currently comprise the Coalition are Associated Construction Contractors of NJ (ACCNJ), South Jersey Mechanical Contractors Association (SJMCA), Employing Bricklayers Association (EBA) and the NJ Association of Plumbing, Heating and Cooling Contractors (PHCC).

The Coalition’s contractor members alone have reported a loss of approximately 30% of their revenue each year in the private sector due to unfair and unlawful …

Nov 18 2019
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First Stop Work Orders Issued by NJDOL

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 NJ Labor Department Issues First Stop Work Orders at Two NJ Construction Sites

Department Takes Action Against Employer Using Expanded Enforcement

Authorities Signed into Law by Gov. Murphy in July

As released by NJDOL.gov on September 17, 2019

 TRENTON – The New Jersey Department of Labor and Workforce Development (NJDOL) issued work stoppage orders at two construction sites, managed by Three Sons Restoration, LLC. of Union, for wage violations – a first-of-its-kind action taken by the department after Governor Murphy expanded its enforcement authorities in July.

 In accordance with N.J.S.A 34:20-7.1, NJDOL’s Division of Wage and Hour Compliance shut down …

Jul 16 2019
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Hayward Man Sentenced to More Than 8 1/2 Years in Prison on Forced Labor and Illegal Harboring Charges

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OAKLAND – A federal jury convicted Job Torres Hernandez of charges that he obtained forced labor from victims and harbored illegal aliens for commercial advantage or private financial gain, announced United States Attorney David L. Anderson and Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent-in-Charge Ryan L. Spradlin.  The conviction follows a ten day trial before the Honorable Jeffrey S. White, U.S. District Judge.

The evidence at trial demonstrated that since at least May 2015, Torres, 38, of Hayward, Calif., owned construction companies in Northern California at which he employed workers to whom he paid little to …

Jul 10 2019
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Bill No. S2577: Stop-Work Order — Signed into Law

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Bill No. S2557, which concerns stop-work orders related to prevailing wage and construction worker employment, was passed in both houses with a vote of 37-1 and on July 9, 2019, was signed by the Governor to take effect immediately.

Contractors that are violating prevailing wage or any wage & hour laws are cheating their workers, law abiding contractors, and the State of New Jersey.

Bill No. S2557 provides the Commissioner of Labor & Workforce Development the ability to investigate unfair business practices and issue stop-work orders.

Noted are some of the Bill’s regulations:

The Commissioner of Labor and Workforce Development…
Jul 10 2019
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Joint Membership Meeting on Misclassification & the Underground Construction Economy

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On April 17, 2019 Masonry Contractors of New Jersey and the South Jersey Mechanical Contractors Association held a joint member    meeting.  John Connors of SJMCA spoke briefly and introduced the evening’s guest speakers on the topic of Misclassification and the Underground Construction Economy, Carol Ciesielski of Masonry Contractors of NJ and Kevin Triplett of the NJ Department of Labor & Workforce Development.   Over 50 Members from the two Associations joined the discussion and were given the opportunity to ask questions.   Misclassification and the Underground Construction Economy are ongoing problems in the state of New Jersey.   Other states have been fighting …

Jul 09 2019
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Governor Murphy Releases Report on Employee Misclassification

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July 9, 2019 – Article from New Jersey Department of Labor

Governor Phil Murphy today released a comprehensive report from the Task Force on Employee Misclassification, vowing to intensify efforts to curtail the widespread and illegal practice of misclassifying workers as independent contractors instead of employees, which cheats some workers out of benefits and wages, hurts law-abiding business owners, and costs the state tens of millions of dollars a year in lost employment-related tax revenue.
The Governor has given the New Jersey Department of Labor and Workforce Development (NJDOL) new tools to help put an end to misclassification and noted …

Jun 18 2019
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Worker and Taxpayer Protection Campaign

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The Association supported a media campaign spearheaded by the Bricklayers and Allied Craftworkers of NJ Local Nos. 4 & 5.  MLV Strategies is a political affairs media strategy and communications firm who created the campaign in efforts to elevate awareness of Misclassification and the Underground Construction Economy in New Jersey.

The first step of the campaign was to poll NJ voters.  The key findings of the poll that took place from June 5th – 13th, 2019 stated that “An overwhelming majority of New Jersey voters support new regulations and enforcement measures to protect construction workers from mistreatment at the hands …

Apr 24 2019
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Public Works Contractor Agrees to $150,000 in Back Wages

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Public Works Contractor Who Underpaid Employees Agrees to $150K in Back Wages Following Labor Department Probe

As released by the NJ Department of Labor and Workforce Development on April 24, 2019.

TRENTON – An Iselin construction contractor has agreed to pay back wages totaling nearly $150,000 to 13 laborers who claimed they were expected to kick back part of their pay to a crew leader while working on prevailing wage jobs.

Fine Wall Corp. and its principals—Umukant Shah, Mrudula Shah, and Ronak Shah—also agreed to pay $64,699 in penalties and $37,060 in fees, as part of a settlement brokered by …