NJDOL Issues Stop-Work Orders to Four Contractors at Jersey City’s 1 Journal Square Project

Violations include worker misclassification, unpaid wages, and failure to provide sick leave and insurance coverage

The New Jersey Department of Labor and Workforce Development (NJDOL) has issued four stop-work orders against subcontractors working on the high-profile construction project at 1 Journal Square Plaza in Jersey City, citing multiple violations of labor laws. The orders were issued between May 22 and June 3, 2025, and target contractors involved in drywall and painting operations at the South Tower, North Tower, and Podium structures of the site.

The actions, initiated by NJDOL’s Division of Wage and Hour Compliance, are part of the state’s ongoing enforcement of fair labor practices in the construction industry. The contractors cited are:

1. MJQ Drywall Group Corp. – Passaic, N.J.

• Hired by: A.J.D. Construction Co. Inc. (Leonardo, N.J.)

• Violations: Improper worker classification, failure to pay overtime, unpaid wages, earned sick leave violations, and hindrance of an official investigation by failing to provide required records.

• Notes: MJQ also subcontracted work to two other companies that received stop-work orders.

2. 506 Painting LLC – Irvington, N.J.

• Hired by: Seton Painting (Garwood, N.J.)

• Violations: Misclassification of workers, failure to properly classify employees, and failure to comply with earned sick leave recordkeeping and posting requirements.

3. Exxon Development Corp. – Philadelphia, Pa.

• Hired by: MJQ Drywall Group Corp.

• Violation: Obstructing the investigation by not providing requested employment records.

4. Oliveria General Services LLC – Edgewater Park, N.J.

• Hired by: MJQ Drywall Group Corp.

• Violations: Misclassification of workers, failure to properly classify employees, and lack of workers’ compensation insurance.

These orders bring the total number of stop-work actions issued by NJDOL to 192 since the agency’s enforcement authority was expanded in July 2019.

Stop-work orders are issued when employers are found to be exploiting workers or operating in violation of state labor laws. The orders immediately halt all work by the cited contractors at the job site. Contractors may appeal the orders, triggering a hearing to be scheduled within seven days. NJDOL retains the right to assess civil penalties of up to $5,000 per day for continued operations in defiance of the orders.

NJDOL emphasized its commitment to monitoring work sites where violations are found, ensuring employers resolve all issues — including the payment of back wages and penalties — before resuming operations.

For detailed information on labor rights and employer obligations in New Jersey, visit myworkrights.nj.gov.