Workers' Compensation: Stop-Work Order Issued to NJ Contractor for Misclassification Violations

The New Jersey Department of Labor and Workforce Development (NJDOL) issued a stop-work order to Galo Contractors Group, LLC, on March 9 for six alleged violations at a worksite in Keansburg.

Galo Contractors Group, headquartered in South River, was working on a project at Keansburg Boardwalk West when the NJDOL performed site inspections on March 4 and March 5, during which time workers reported the alleged violations.

Violations reported during the inspections included misclassifying workers as independent contractors, hindering the investigation, and failure to register as a public works contractor, pay prevailing wage, post prevailing wage rates, and obtain workers compensation insurance, which was verified by the Division of Workers Compensation.

“We listen to workers and take every allegation of violation very seriously,” said Labor Commissioner Robert Asaro-Angelo. “The overwhelming majority of public contractors in New Jersey support their workers and boost our economy by paying the proper wages; we will do everything within our authority to protect them and exploited workers from the few who try to skirt the law.”

Once the stop-work order was posted, employees placed safety measures around the project, packed their tools and equipment, and left the job site.

“Not only did these workers allege improper compensation for their work, but their well-being was put on the line without proper insurance,” said Assistant Commissioner Joseph Petrecca of the Division of Wage and Hour Compliance. “We cannot let employees work under such irresponsible conditions.”

Galo Contractors Group was hired to work on the Keansburg project by Ascend Construction Management, Inc., which was also given a copy of the stop-work letter.

The investigation into this matter is ongoing. Galo Contractors Group has not filed an appeal to the charges contained in the stop-work order.

For more information on New Jersey’s wage and hour laws, please visit myworkrights.nj.gov.

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