Stop-Work Order Bill Awaits Signature by New Jersey Governor

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 bill, A3569, was passed by New Jersey's legislature last week, and has been sent to the governor for his signature. The bill was sponsored by Assemblyman Joseph V. Egan (D-New Brunswick), who is deputy majority leader and chair of the Assembly Labor Committee, and Assemblywoman Annette Quijano (D-Union)

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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