On January 14, 2010, a bill (S2773) aimed at combating employers that pay workers off the books was signed into law (P.L.2009, c.194), allowing for the suspension and revocation of employer licenses for certain repeat violations of state wage, benefits, and tax laws (i.e., the New Jersey Wage Payment laws; Prevailing Wage Act; Wage and Hour Law; Workers’ Compensation law; Unemployment Compensation law; Temporary Disability Benefits law; Family Leave Insurance law; and the New Jersey Gross Income Tax Act).
This law, which takes effect on July 14, 2010, allows the Commissioner of Labor to conduct a follow-up audit of any employer who within the prior 12 months already was found by the Commissioner to have failed to pay wages, benefits, taxes or other contributions or assessments as a result of improper reporting and recordkeeping under the above laws. If during the follow-up audit, the Commissioner determines that the employer’s infractions have continued, the Commissioner may direct the temporary suspension of the employer’s license(s) and must conduct a subsequent audit within the next 12 months. If the violations still remain during that subsequent audit, the employer’s license(s) must be permanently revoked. This Act also applies to successor firms of the employer.
This new law also requires employers to conspicuously post notification in their workplaces, in a form (not yet available) to be issued by the Commissioner, of the employer’s obligations to maintain and report employee wage, benefit, and tax records. In addition, employers must provide each employee a written copy of the notification no later than 30 days after the form of the notification is issued, or at the time of an employee’s hiring. Finally, the Act prohibits discrimination against employees who assert their rights (or make inquiries) under the Act, and such discrimination is considered a disorderly person’s offense for which a fine up to $1,000 may be imposed.
