New Jersey Imposes Harsh Penalties on Repeat Wage and Hour Offenders
Governor Chris Christie signed a law which imposes harsh penalties on employers who repeatedly violate the state’s wage and hour laws, particularly the suspension of revocation of licenses to do business in the state. The act will take effect on or about July 13, 2010, but the state commissioner of Labor and Workforce Development can take immediate action if necessary. Included in the new law are the Prevailing Wage Act, Wage and Hour Law, Workers’ Compensation Law, Temporary Disability Benefits Law, Gross Income Tax Act and several other state laws.
If the Commissioner determines that en employer has violated wage and hour laws, the employer will be subject to an audit within twelve (12) months after that determination is made. If, during that audit, the employer remains in violation, any number of licenses can be suspended at that time. The timeframe of the suspension will be determined by a number of factors, such as the number of employees and amount of unpaid wages, taxes and/or benefits, and whether a good faith effort was made to correct the violations. The employer will also be subject to a second audit, in the same timeframe. If the violations continue, then their license may be permanently revoked.
Employers will be required to post notices of their obligations pursuant to the law and also to issue written notification to their employees of same.
The text of the law can be found at http://www.njleg.state.nj.us/2008/Bills/S3000/2773_U1.HTM.