New Jersey § 34:15-79

§ 34:15-79.

a. An employer who fails to provide the protection prescribed in this article , who misrepresents one or more employees as independent contractors, or who provides

false, incomplete or misleading information concerning the number of employees, shall be guilty of a disorderly persons offense and , if the failure, misrepresentation or provision of false, incomplete or misleading

information is knowing, shall be guilty of a crime of the fourth degree , and shall be subject to a stop-work order issued by the Director of the Division

of Workers' Compensation pursuant to subsection e. of this section . In cases where a workers' compensation award in the Division of Workers' Compensation

of New Jersey against the defendant is not paid at the time of the sentence, the court

may suspend sentence upon that defendant and place him on probation for any period

with an order to pay the delinquent compensation award to the claimant through the

probation office of the county. Where the employer is a corporation, any officer who is actively engaged in the

corporate business, including, but not limited to, the president, vice-president,

secretary, and the treasurer thereof shall be liable for failure to secure the protection

prescribed by this article. Any contractor placing work with a subcontractor shall, in the event of the subcontractor's

failing to carry workers' compensation insurance as required by this article, become

liable for any compensation which may be due an employee or the dependents of a deceased

employee of a subcontractor. The contractor shall then have a right of action against the subcontractor for reimbursement. b. A rebuttable presumption that an employer has established a successor firm, corporation

or partnership shall arise if the two share at least three of the following capacities

or characteristics: (1) perform similar work; (2) occupy the same premises; (3)

have the same telephone or fax number; (4) have the same email address or Internet website; (5) perform work in the same geographical area; (6) employ substantially

the same work force; (7) utilize the same tools and equipment; (8) employ or engage

the services of any person or persons involved in the direction or control of the

other; or (9) list substantially the same work experience. If it is determined that an employer has established a successor firm, corporation

or partnership, the “uninsured employer's fund” shall have a subrogation right against

the successor firm, corporation or partnership for any benefits paid pursuant to R.S.34:15-1 et seq. by the “uninsured employer's fund,” the injured worker may seek benefits not otherwise

paid or payable by the “uninsured employer's fund” from the successor firm, corporation

or partnership, and the successor firm, corporation or partnership shall have all

of the same responsibilities regarding workers' compensation required pursuant to R.S.34:15-1 et seq. as the original employer. c. Failure to produce at the time of the trial or upon written request by the division

proof of workers' compensation insurance coverage by a mutual association or stock

company authorized to write coverage on such risks in this State or written authorization

by the Commissioner of Banking and Insurance to self-insure for workers' compensation

pursuant to R.S.34:15-77 , which was in force for the time cited by the division, creates a rebuttable presumption

that the employer was uninsured when charged with a violation of this section. d. The Director of the Division of Workers' Compensation, or any officer or employee

of the division designated by the director, upon finding that an employer has failed

for a period of not less than 10 consecutive days to make the provisions for payment

of compensation required by R.S.34:15-71 and R.S.34:15-72 , shall impose upon that employer, in addition to all other penalties, fines or assessments

provided for in chapter 15 of Title 34 of the Revised Statutes or in any supplement

thereto, a penalty in the amount of up to $5,000 and when the period exceeds 10 days,

an additional penalty of up to $5,000 for each period of 10 days thereafter. All penalties under this act shall be enforced and collected in accordance with

section 12 of P.L.1966, c. 126 ( C.34:15-120.3 ). Failure or refusal to comply with a stop work order issued by the Director of the

Division of Workers' Compensation pursuant to subsection e. of this section shall,

in addition to any other penalties provided by law, result in the assessment of a

penalty of not less than $1,000 and not more than $5,000 for each day found not to

be in compliance. All penalties collected under this section shall be paid into the “uninsured employer's

fund.” e. If the Director of the Division of Workers' Compensation determines, after investigation,

that an employer knowingly failed to provide the protection prescribed in this article,

knowingly misrepresented one or more employees as independent contractors, or knowingly

provided false, incomplete or misleading information concerning the number of employees,

the director shall issue, not later than 72 hours after making the determination,

a stop-work order requiring the cessation of all business operations of that employer

at every site at which the violation occurred. The order shall take effect when served upon the employer, or, for a particular

employer worksite, when served at that worksite. The order shall remain in effect until the director issues an order releasing the

stop-work order upon finding that the employer has come into compliance with the requirements

of this section and has paid any penalty assessed under this section. A stop-work order issued pursuant to this section against an employer shall apply

against any successor firm, corporation or partnership of the employer in the same

manner that it applies to the employer. An employer who is subject to a stop-work order shall have the right to apply to

the director, not more than 10 days after the order is issued, for a hearing to contest

whether the employer committed the violation on which the order was based, and the

hearing shall be afforded and a decision rendered within 48 hours of the application. f. The Commissioner of Labor and Workforce Development shall, pursuant to the “Administrative

Procedure Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ), promulgate rules and regulations necessary to implement the provisions of this

section.