We’re not much for public shaming — but we can’t blame the New Jersey Department of Labor & Workforce Development for doing what it is doing.
For the good of the state — and law-abiding businesses.
Last fall, the DOL went live with the “Wall” — or the Workplace Accountability in Labor List. It’s a public listing of employers that have failed to address their outstanding liabilities for violations of wage, benefit or tax laws.
DOL officials say the Wall is a powerful enforcement tool that enables the department to publicly name companies that shortchange their workers and skip required contributions to programs such as unemployment insurance and workers’ compensation.
Here’s the deal: The Wall is working.
To date, the DOL has recovered more than $480,000 in outstanding liabilities from businesses posted to the WALL or warned their business would be added to the Wall if they did not resolve their outstanding liabilities.
In August, the DOL added the names of 19 businesses to the Wall, bringing to 197 the number of employers listed. These 19 businesses owe a total of nearly $1.4 million, including unpaid contributions, penalties and interest to the Unemployment Compensation Fund and State Disability Benefits Fund, and penalties for failing to protect their workers under the New Jersey Workers’ Compensation Law.
Who’s on the Wall
For a list of the companies that owe back pay to the New Jersey Department of Labor & Workforce Development, click here.
The 197 businesses posted to the Wall collectively owe $19.5 million — either directly to their workers or to the state for unpaid taxes or contributions.
The initiative was established through bipartisan action (S4226) in 2020 as part of an effort to combat worker misclassification and exploitation.
It gives DOL power to protect fair-minded businesses across the state from employers that undercut their workers to gain a competitive edge. Any business whose name appears on the Wall is barred from public contracting with state, county or local governments, until it pays its liabilities in full.
Posting on the Wall is separate from — and may be in addition to — other accountability measures, such as public contractor debarment and business license suspension or revocation. State, county, municipal and school procurement officers must cross-reference the Wall before awarding public contracts, as they do with the debarment list.
Businesses receive letters warning that their company’s name will be posted to the Wall unless they remedy their outstanding liabilities; they are given 20 days from the date they receive notice to pay in full or challenge their pending placement on the Wall.
It all sounds good.
It’s just not a perfect solution.
Last month, not a single company came off the Wall.
