ASSEMBLY LABOR COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5838

with committee amendments

STATE OF NEW JERSEY

DATED:  NOVEMBER 18, 2019

      The Assembly Labor Committee reports favorably and with committee amendments Assembly Bill No. 5838.

      As amended, this bill permits the Commissioner of Labor and Workforce Development to issue a stop-work order against any employer who is determined by the commissioner to be in violation of any State wage, benefit and tax law.

      A stop-work order issued under the bill requires the cessation of all business operations at every site where the violation occurs, and is to remain in effect until the commissioner issues an order releasing the stop-work order upon a finding that the employer has agreed to pay the required wages and has paid any wages or penalty owed. As amended the bill requires the commissioner serve a notification of intent to issue a stop-work order on the employer at least seven days prior to the issuance of a stop-work order. As a condition of release from a stop-work order, the commissioner may require the employer to file with the department periodic reports for a probationary period of up to two years. The commissioner may assess a civil penalty of $5,000 per day against an employer for each day that it conducts business operations that are in violation of the stop-work order.

      As amended, the bill clarifies that nothing in the bill precludes an employer from seeking injunctive relief from a court of competent jurisdiction if the employer can demonstrate that a stop-work order would be issued or has been issued in error.

      The bill also gives the commissioner authority, when investigating potential violations, to enter workplaces and inspect records. An employer who fails to provide access to the workplace or records or otherwise hinders the commissioner, may be fined not less than $1,000 and be guilty of a disorderly persons offense.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1) Require the commissioner to serve a notification of intent to issue a stop-work order on the employer at least seven days prior to the issuance of a stop-work order; and

      (2) Clarify that nothing in the bill precludes an employer from seeking injunctive relief from a court of competent jurisdiction if the employer can demonstrate that a stop-work order would be issued or has been issued in error.