New Jersey businesses now face criminal penalties for failing to pay the wages owed to their employees thanks to legislation signed into law today by Acting Govern Shelia Oliver. NJBIA is concerned, however, the law would subject employers to criminal penalties for what are honest mistakes attributable to the legal complexities of New Jersey’s wage and hour law.
“NJBIA fully supports the strong penalization of employers who knowingly and willfully cheat their employees through failing to pay wages, salary or benefits they are entitled to,” said Mike Wallace, NJBIA vice president of Government Affairs. “This law, as signed, however, criminalizes inadvertent wage-and-hour violations and will also hold New Jersey businesses responsible for the actions of their contractors.”
The law says employers who engage in a “pattern of wage non-payment” could be charged with a third-degree crime punishable by three to five years in prison and up to $15,000 in fines. The law also makes employers liable for the wage and hour violations of their contractors and client employers, and unnecessarily broadens the definition of retaliation.
“Employers are now at risk of massive penalties and possibly years of jail time if they lose in court on reasonably disputable points. Also, as a result of this law, they now assume the risk of treble-damage class actions for unknown violations of a vendor or contractor they hire.”
The Association is seeking legislation to correct some of the provisions of the law that could wind up snaring employers who are acting in good faith but make honest mistakes.
“We look forward to working with the Legislature and the Administration to ensure employers that operate honestly and in good faith are protected from punitive damages for inadvertent errors,” Wallace said.
This is utterly absurd to be liable even with the wrong doings of contractors or sub-contractors, which at no time you have access to their internal operational aspects. It seems we are having an administration government for punitive purposes not for the betterment of the state. Another nail in the cofin of the NJ State stand for Business in the Garden State. Sad time for the state and keep on it in order to shed some logical light on this new nonsensical legislation by this administration.
Can someone remind this administration that good intentions is not enough excuse to be stupid.
Welcome to the Worst Business environment in the USA
Yet another reason for businesses to flee New Jersey with the worst business climate in the USA. This is utterly absurd and beyond destructive to our State. There simply is no respect left and businesses of all types and sizes are growing deeply distrustful of Trenton. What’s really disgusting is that we have a Governor who thinks signing legislation is beneath him and just some menial task for an underling. A real Governor wouldn’t need an aid to sign legislation for him. What a slap in the face.
This governor will drive most businesses out of the state. It’s just a matter of time. The regulations, litigation prospects due to unreasonable laws, taxation, etc., is now intolerable. The exodus is already beginning. Hopefully, someone like Sweeney, can help turn the ship, before it hits the iceberg.
If you are a legitimate organization that pays their taxes and proper wages and benefits, you should also hold your sub contractors to the same laws and standards.
Don’t hire unscrupulous contractor and sub contractors and their won’t be any issues.
The amount of money/ revenue that is lost due to unscrupulous contractors is astonishing. We all have to play by the rules in order for there to be a fair and even playing field and the workers deserve their fair share too! Enough is enough! Tax fraud is a huge issue in our state/country!!
Mark, everybody wants to be fair but how is a business to know exactly what a contractor or subcontractor is doing regarding his or her payroll? What about legitimate mistakes that are made or disputed issues, what about a substantial increase in the statute of limitations, what about punitive/treble damages, what about the ambulance chaser lawyers who are going to sue you to try and obtain a nuisance settlement or worse, what about the time and cost necessary to deal with all these issues, even if you didn’t do anything wrong?? Who pays for all this Mark ? And better yet, go to jail. Yeah, that sounds fair to me.
Unbelievable! Our lawmakers have just added another layer to the already complex and difficult to fathom labor laws in New Jersey. All this will do is continue to drive business out of the state and make it even more expensive to live and work in NJ.
Criminalizes inadvertent wage & hour violations?
Hired Contractor’s?
I guess we must lock up State Employees who make honest errors on payroll
and in cost incurred billings to their contractor’s.