Official Site of The State of New Jersey

FOR IMMEDIATE RELEASE

August 2, 2024

TRENTON – The New Jersey Department of Labor and Workforce Development (NJDOL) delivered stop-work orders on July 10, 2024, to construction sites spanning North Bergen and Jersey City after uncovering numerous workers’ rights violations by subcontractors MJSS Construction LLC of Newark and Yolo Construction Corp. of North Bergen. NJDOL also issued a company-wide order for Yolo Construction Corp. to halt all work. Primary contractor, Euro Concrete of Jersey City, agreed to an enhanced compliance plan.

“These egregious practices not only undermine the law, but also create a damaging environment of unfair competition by undercutting those businesses who do adhere to our state’s high labor standards,” said Assistant Commissioner Joseph Petrecca of the NJDOL’s Division of Wage and Hour Compliance. “The department remains committed to ensuring fairness for both workers and employers who follow the law.”

MJSS Construction was hired by Euro Concrete to work on a project at 96 Tonnelle Avenue in Jersey City. NJDOL uncovered numerous violations impacting 87 workers, including improper classification of construction workers, failing to properly classify employees, overtime rate violations, improper Earned Sick Leave records, improper notification/posting of Earned Sick Leave, and unpaid wages/late payment.

Yolo Construction was also hired by Euro Concrete to complete work at 96 Tonnelle Avenue in Jersey City and 2958 JFK Boulevard in Jersey City. Yolo Construction was ordered to stop work company-wide due to the serious and widespread nature of violations affecting 45 workers, including at another job site at 8619 Bergenline Avenue in North Bergen. Violations included improper classification of construction workers, failing to properly classify employees, overtime rate violations, improper Earned Sick Leave records, improper notification/posting of Earned Sick Leave, and unpaid wages/late payment.

NJDOL also issued a stop-work order to Euro Concrete for work being performed at 135 Columbus Drive in Jersey City; but, after requesting a hearing, the company provided further evidence indicating the contractor was in compliance at this site and NJDOL lifted the order.

However, as the hiring contractor, Euro Concrete is considered jointly and severally liable for Yolo Construction’s workers on the 2958 JFK Boulevard site, pursuant to N.J.S.A 34:11-58.2. Euro Concrete agreed to pay $44,080.60 in wages to the affected workers, a misclassification penalty of $25,536.33 that will be paid to misclassified workers, and $31,961.69 in administrative penalties and fees.

In addition, Euro Concrete has taken proactive steps to ensure compliance by future subcontractors by revising its subcontract agreements to add language stating the subcontractor shall comply with all pertinent Wage and Hour Laws, and face increased oversight by Euro.

NJDOL has issued 167 stop-work orders since July 2019. The company-wide stop-work order issued to Yolo Construction is the second time NJDOL has used this authority, with the first being in April 2021.

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.

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.

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

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