NJDOL Issues Stop-Work Order to Contractor Performing Work at Newark High School of Architecture & Interior Design Site
FOR IMMEDIATE RELEASE
October 8, 2024
TRENTON – Investigators from the New Jersey Department of Labor and Workforce Development’s (NJDOL) Division of Wage and Hour Compliance issued the following stop-work order on September 25, 2024:
Employer: Allied Construction Services L.L.C. of Newark, N.J.
Work Location: Newark High School of Architecture & Interior Design, 155 Jefferson Street, Newark, N.J.
Category: Public Works Construction
Details: Allied Construction Services was hired as a subcontractor by primary contractor Hughes & Hughes General Contracting of New York, N.Y.
Violations: Improper Classification of Construction Workers; Failing to Properly Classify Employees; Failure to Pay Prevailing Wage; Wages/Late Payment; Failure to Register; Contracted Unregistered Subcontractor; Failure to Keep Accurate Certified Payrolls; Obstruction/Hindering of the Investigation; Earned Sick Leave Records and Notification/Posting Violations
In September 2022, NJDOL issued stop-work orders to a general contractor and subcontractor working at this site, as well as the developer of the property: general contractor Townhouse Builders Inc. of Brooklyn, N.Y., subcontractor Dimension Contractors LLC of Newark, and developer Summit Assets of New York, N.Y. In addition to not paying workers the state prevailing wage rate, neither the developer – which had workers at the site – nor the subcontractor were registered to perform public work in New Jersey. Summit Assets was also cited for misclassifying workers as independent contractors. Townhouse Builders was also cited for employing non-registered contractors on a prevailing wage job site.
NJDOL has issued 177 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. An employer may appeal a stop-work order, in which case NJDOL has seven days to schedule a hearing. Allied Construction Services sought a hearing, but it was adjourned at the employer’s request.
NJDOL continues to monitor locations where stop-work orders have been issued, and can assess civil penalties of $5,000 per day against an employer conducting business in violation of the order. The stop-work order may be lifted if and when any remaining back wages and penalties have been paid and all related issues have been resolved.
NJDOL and its partners at the New Jersey Department of Community Affairs and the New Jersey Department of Education sent direct letters reminding local governments and boards of education of their responsibilities under the New Jersey Prevailing Wage Act.
NJDOL maintains a record of registered public works contractors that should be consulted by any government agency or entity before hiring for a public works project. Doing so can help avoid unnecessary project delays and extra costs to businesses, schools, government entities and taxpayers. The list contains thousands of businesses, and is searchable by name, address, registration date, and certificate number.
In addition, registered public works contractors are required to participate in Registered Apprenticeship programs, which ensures that public funds contribute to the training of New Jersey workers in the construction sector.
For more information on worker benefits and protections, please visit myworkrights.nj.gov.
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