In 2019, New Jersey changed its labor laws to make it easier for the state’s Department of Labor to crack down on unsafe work conditions and unfair treatment of workers. Since then, the Department of Labor and Workforce Development has issued seventy-one stop-work orders.

Most of the orders issued to date went to construction companies. Other businesses have also faced scrutiny from the labor department, including an internet radio station and multiple medical offices.

What is a Stop-Work Order?

True to its name, a stop-work order tells a business to stop its daily work until a Department of Labor and Workforce Development investigation is complete. Investigations examine situations where workers may be exploited or companies aren’t following state law.

Some investigations take only a few days to complete while others can take weeks or months. If misconduct is found, penalties may range from paying damages to losing certain privileges. In eleven cases, for example, a construction contractor was banned from doing future public works after an investigation revealed severe concerns.

How are Stop-Work Orders Related to Workers’ Compensation?

Most of the orders issued since 2019 address businesses that aren’t following state law in some way. Often, violations fall into one of two categories:

• The employer didn’t have required workers’ compensation insurance; or
• The employer classified workers as independent contractors when the workers should have been classified as employees.

Both situations pose severe risks for workers. When an employer doesn’t have workers’ compensation insurance coverage, an injured worker may not be able to receive the necessary medical care or support during their time of recovery.

Even if an employer has workers’ compensation insurance, workers’ comp benefits are only available for employees. By pretending an employee is a contractor, a company can save money on its workers’ compensation and unemployment insurance costs – but only by putting that worker at serious risk.

Workers’ compensation helps New Jersey employees who are injured on the job. Benefits include coverage for medical expenses, support during periods of temporary or permanent disability, and death benefits if an injury leads to a fatality.

State law allows the Department of Labor and Workforce Development to issue a stop-work order if an employer “knowingly” fails to maintain workers’ compensation coverage or “knowingly” misclassifies one or more employees as independent contractors. The law treats an employer as “knowingly” failing to get workers’ compensation insurance if:

• The employer had workers’ compensation insurance in the past but canceled it or let it lapse without renewing it.
• The Department of Labor and Workforce Development has informed the employer that it should have workers’ compensation coverage.
• The employer has violated New Jersey workers’ compensation law in the past by not having coverage, not having enough coverage or misclassifying employees as contractors.

Not all New Jersey employers try to skirt the law in this way. Many businesses work to classify their workers correctly and to ensure they have workers’ compensation coverage. However, when a company fails to meet these responsibilities, the burden may fall on an injured worker.

I Was Injured on the Job. Should I Report My Workplace?

The first thing to do after an on-the-job injury is to seek medical care, especially in an emergency situation. In a non-emergency situation, you should tell your supervisor about the injury first. If your workplace has workers’ compensation coverage, your supervisor can give you a list of healthcare providers covered by that workers’ compensation insurance.

If your workplace has workers’ compensation coverage and you’re an employee, you may not need to report to anyone. You can focus on healing and getting the benefits you need.

If your workplace doesn’t have workers’ compensation insurance or you’re classified as an independent contractor, it’s still important to get prompt medical care. Your medical needs are still essential. However, receiving assistance with medical costs and other losses may be more challenging.

Contact Petrillo & Goldberg Today To Discuss Next Steps

An experienced workers’ compensation attorney can help you determine the next steps. If your workers’ compensation claim is denied, your lawyer can help you fight for the necessary benefits. If your employer doesn’t have workers’ compensation insurance, your lawyer can help you determine the next steps. If you discover that you are classified as a contractor, your attorney can help determine if that classification is correct. If not, your lawyer can help you fight for the workers’ compensation benefits you’re entitled to as an employee.

Stop-work orders are one way the New Jersey Department of Labor and Workforce Development seeks to make work safer for everyone. If you sustained serious injuries while working for a New Jersey employer, contact the team at Petrillo & Goldberg for a free, confidential consultation today.