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Wednesday, May 8, 2019

New Penalties Proposed for Employers

Employers who fail to maintain or file reports of accidents, wages, benefits to taxes will be subject having their license suspended or revoked under a proposed rule. The proposed rule published by The Department of Labor and Workforce Development (NJDOL) will empower NJ to strictly enforce compliance including compliance with the workers compensation law, NJSA 34:15-1, et seq.


N.J.A.C. 12:4-1.1 Purpose and scope 
(a) The purpose of this chapter is to implement N.J.S.A. 34:1A-1.11 et seq., which empowers the Commissioner under certain circumstances to issue a written determination directing any appropriate agency to suspend or revoke any one or more licenses that are held by an employer who has failed to maintain and report a record(s) regarding wages, benefits, and taxes that the employer is required to maintain or report under State wage, benefit, and tax laws, and who has in connection with the failure to maintain or report a required record(s), failed to pay wages, benefits, taxes, or other contributions or assessments as required by State wage, benefit, and tax laws. 

(b) This chapter applies to each employer covered under any one or all of the State wage, benefit, and tax laws. 

(c) For the purpose of this chapter, the officers of a corporation and any agents having the management of such corporation shall be deemed to be the employers of the employees of the corporation. 

(d) For the purpose of this chapter, the individual(s) responsible for management of a Limited Liability Company (L.L.C.) or Limited Liability Partnership (L.L.P.) shall be deemed to be the employer(s) of the employees of the L.L.C. or L.L.P. 


The rule, as proposed, would also be directed to employee leasing companies: 


N.J.A.C. 12:4-3.4 Employee leasing companies 
(a) The Commissioner may take action under N.J.A.C. 12:4-3.1, 3.2, or 3.3, against an employee leasing company as the co-employer of the employees of its client company, including, but not limited to, the issuance of a written determination directing that the employee leasing company’s registration be either suspended or permanently revoked, provided that the Commissioner has not determined that the failure or continued failure to keep records regarding, and to pay wages, benefits, and taxes under State wage, benefit, and tax laws, was caused by incomplete, inaccurate, misleading, or false information provided to the employee leasing company by the client company. 

(b) In each instance where the Commissioner takes action under (a) above against an employee leasing company as the co-employer of the employees of its client company, the Commissioner may also take action under N.J.A.C. 12:4-3.1, 3.2, or 3.3, against the client company. 

Suspension and Revocation of Employer License for Non-Compliance with State Wage, Benefit, and Tax Laws, 51 N.J.R. 533(a) (May 6, 2019)

See also:



 (May 6, 2019)

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Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900jon@gelmans.com has been representing injured workers and their families who have suffered occupational accidents and illnesses.

Updated: 05-13-2019