The head of New Jersey’s workers’ compensation division could begin issuing stop-work orders against contractors for misrepresenting employee headcounts under a bill awaiting signature by Gov. Jon Corzine.
The change in the law empowers the director of the Division of Workers’ Compensation to issue a stop-work order against contractors that undercount their employees or lie about a workers status as an independent contractor, in order to avoid workers’ compensation premiums.
Any stop-work orders issued by the director would affect all locations and job sites for the contractor, and would be issued no later than three days after the violations were found.
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