State Uses New Law to Bust Subcontractor for Alleged Misclassification

A New Jersey subcontractor has been ordered to stop work and pay more than $19,000 in fines for allegedly misclassifying workers, failing to obtain workers' compensation coverage and failing to deduct taxes. The citation by the state Department of Labor and Workforce Development is one of the first significant actions after the Legislature last year granted the agency vast new authority to fight misclassification and payroll fraud. The laws were recommended by a misclassification task force appointed by Gov. Phil Murphy, according to a news release. “We are sending a loud, cl...