In early 2020, Governor Murphy signed a series of bills aimed at identifying and penalizing businesses for misclassification of employees as independent contractors. On July 8, 2021, New Jersey enacted four additional laws to further its previous efforts to combat misclassification of workers.
A5890: Injunctions and Stop-Work Orders
This law, effective immediately, allows the Commissioner of the Department of Labor and Workforce Development (“DOL”) to seek a superior court injunction to prevent ongoing violations of State wage, benefit, and tax laws stemming from employee misclassification. Previously alleged violations were handled administratively before the Office of Administrative Law (“OAL”). Under this new law, the Commissioner can bypass the OAL and go straight to court. If the Commissioner prevails, all remedies are available to the victims of misclassification. Additionally, the Court shall award reasonable attorney’s fees and litigation and investigation costs. Determining whether to pursue an enforcement action is left to the “sole discretion” of the Commissioner.