NJ Department of Labor Strikes Landmark Agreement Protecting Rights of Drywall Workers

A first-of-its-kind enhanced compliance agreement follows extensive violations discovered within the drywall industry.

In a groundbreaking move, the New Jersey Department of Labor and Workforce Development (NJDOL) has secured a unique enhanced compliance agreement with Donald Drywall, L.L.C., a Lakewood subcontractor, as part of its strategic enforcement initiative focusing on the drywall industry. This follows investigators uncovering significant wage, hour, earned sick leave, and employee misclassification violations within the company.

The Wage and Hour Division identified 48 misclassified employees working for Donald Drywall on a Hudson County construction project. The subcontractor was found to have neglected to pay minimum wage, failed to pay all wages owed, and did not adhere to a bi-weekly wage payment schedule. Some employees were paid in cash and off the books, which deprived them of key employee benefits such as workers’ compensation and overtime pay.

Labor Commissioner Robert Asaro-Angelo said, “Our investigations reveal that misclassification of drywall workers is widespread. Our investigators are dedicated to rooting out worker exploitation and I’m proud of their collaboration with employers and employee advocates to effect lasting change in industries with high rates of non-compliance such as drywall installation.”

The strategic enforcement approach spearheaded by the NJDOL’s Wage and Hour Division focuses on industries notorious for non-compliance with labor laws and where employees are less likely to file complaints.

After a stop work order halted construction for a week due to the violations, Donald Drywall agreed to an enhanced compliance agreement at a follow-up hearing. The agreement includes a three-year ban on working on public construction contracts, submission of payroll records for all employees, and implementation of compliance measures.

Donald Drywall has been ordered to pay back wages, damages, penalties, and fees totaling $167,060.60.

March Associates Construction Inc., the general contractor, could also be liable if the subcontractor fails to meet its assessment. The work site, located at Riverbend District Block D, 1100 South Fifth St., Harrison, is being developed by Advance Realty Investors, trading as Block D Partners Urban Renewal I, L.L.C.

The Wage and Hour Division continues its unannounced visits throughout the state, investigating drywall contractors working on high-profile, multi-unit residential construction projects. This is part of an ongoing effort to shift the culture within the construction industry that has led to the rampant misclassification of workers.

The NJDOL remains committed to working with the construction industry to enforce business practices that ensure compliance with state law for all drywall workers. The Department also closely collaborates with worker advocacy groups to provide education and training, ensuring workers fully understand their rights as employees.

The first strategic enforcement initiative by the NJDOL’s Wage and Hour Division focused on the retail laundromat industry.

For more information on New Jersey’s wage and hour laws, please visit myworkrights.nj.gov.