New Jersey § 34:20-7

§ 34:20-7.

a. If the Commissioner of Labor and Workforce Development determines, after investigation,

that an employer failed to properly classify an individual as an employee in accordance

with section 4 of this act, 1 the commissioner may order the immediate suspension of a contractor's registration

issued pursuant to section 7 of P.L.1999, c. 238 ( C.34:11-56.54 ), if the commissioner also determines that ordering an immediate suspension is in

the public interest, and provided that the contractor is afforded an opportunity to

contest the immediate suspension in the following manner: (1) The commissioner shall notify the contractor in writing of the immediate revocation

and the contractor's rights under this subsection. (2) The contractor may notify the commissioner of its request for an opportunity to

be heard and contest the immediate suspension in writing within 72 hours of its receipt

of immediate suspension notification. (3) Within seven business days of receipt of the notification from the contractor

pursuant to paragraph (2) of this subsection, the commissioner shall grant the contractor

a hearing to contest the immediate suspension. The commissioner shall permit the contractor to present evidence at the hearing. (4) The commissioner shall issue a written decision within five business days of the

hearing either upholding or reversing the contractor's immediate suspension. The decision shall include the grounds for upholding or reversing the contractor's

immediate suspension. (5) If the contractor disagrees with the written decision, the contractor may appeal

the decision to the commissioner, in accordance with the “Administrative Procedure

Act,” P.L.1968, c. 410 ( C.52:14B-1 et seq. ). b. If the commissioner orders the immediate suspension of a contractor's registration

pursuant to subsection a. of this section, the violation shall have no effect on the

registration of any contractor or subcontractor, regardless of tier, in the contractual

chain with the suspended contractor. c. For a second violation of the provisions of this act, 2 the commissioner shall issue a stop-work order requiring the cessation of all business

operations at every site at which the violation occurred within 72 hours of that determination. 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 commissioner issues an order releasing

the stop-work order upon finding that the employer has properly classified the individual

as an employee and has paid any penalty assessed under this section. As a condition of release from a stop-work order, the commissioner may require an

employer who is found to have failed to properly classify an individual as an employee

to file with the department periodic reports for a probationary period that shall

not exceed two years that demonstrate the employer's continued compliance with this

section. The department shall promulgate rules and regulations to determine filing times

and report requirements. d. For a third or any subsequent violation of the provisions of this act, the commissioner

shall issue a stop-work order requiring the cessation of all business operations of

the violator within 72 hours of that determination. The order shall take effect when served upon the employer. The order shall remain in effect until the commissioner issues an order releasing

the stop-work order upon finding that the employer has properly classified the individual

as an employee and has paid any penalty assessed under this section. As a condition of release from a stop-work order, the commissioner may require an

employer who is found to have failed to properly classify an individual as an employee,

to file with the department periodic reports for a probationary period that shall

not exceed two years that demonstrate the employer's continued compliance with this

section. The department shall promulgate rules and regulations to determine filing times

and report requirements. e. Stop-work orders and penalty assessment orders issued pursuant to this section

against an employer shall be in effect against any successor corporation or business

entity that has one or more of the same principals or officers as the employer against

whom the stop-work order was issued and which is engaged in the same or equivalent

trade or activity. f. The commissioner may assess a civil penalty of $5,000 per day against an employer

for each day that it conducts business operations that are in violation of a stop-work

order issued pursuant to this section. g. In addition to any other penalties provided for in this section, the commissioner

may assess against an employer a civil penalty of $5,000 for each individual who the

employer failed to properly classify as an employee. h. If the employer denies that a failure to properly classify an employee has occurred,

the employer shall have the right to apply to the commissioner to request a hearing,

which shall be afforded and a decision rendered within 48 hours of the request for

the hearing. i. The penalty shall be collected by the commissioner in a summary proceeding in accordance

with the “Penalty Enforcement Law of 1999,” P.L.1999, c. 274 ( C.2A:58-10 et seq. ). 1

N.J.S.A. § 34:20-4. 2

L.2007, c.114 (N.J.S.A. § 34:20-1 et seq.).