New Jersey Law Targets Contractors that Undercount Employees

July 15, 2009

New Jersey workers' comp regulators will soon be able to issue stop-work orders to contractors who misrepresent employee headcounts, under a bill signed by Gov. Jon S. Corzine.

The bill targets contractors that undercount employees in order to avoid paying workers' compensation premiums. Stop-work orders would affect all locations and job sites for the contractor, and would be issued no later than three days after the violations were found.

The bill, which was passed by New Jersey lawmakers in June, was sponsored by Assemblyman Joseph V. Egan (D-New Brunswick) and Assemblywoman Annette Quijano (D-Union)