Many workers are entitled to payment of a minimum wage and extra pay for overtime work. Workers who believe their employers have failed to pay them the correct amount can recover damages in civil lawsuits under New Jersey employment law. If an employer has falsely classified a worker as an independent contractor instead of an employee to avoid minimum wage or overtime, they may be liable to that worker under state law. The New Jersey Department of Labor and Workforce Development (LWD) recently filed a lawsuit against a general contractor and multiple subcontractors involved in a large construction project in Jersey City. The suit alleges wage violations, employee misclassification, and other claims.
New Jersey law currently sets the minimum wage at $15.49 per hour for most employers. This is the minimum rate that must pay to non-exempt workers. Both New Jersey and federal law require time-and-a-half for hours worked over forty in a week; thus, if a non-exempt worker makes $18 per hour and works fifty hours in a week, the employer must pay them $27 per hour for the last ten of those hours worked.
Failure to pay minimum wage and overtime, also known as “wage theft,” may cost workers across the country as much as $50 billion each year. This amount exceeds all other forms of theft, such as burglaries and robberies, combined. Private lawsuits and government regulators only recover a fraction of the amount lost to wage theft.
The public also loses because of wage theft. Worker misclassification alone may cost New Jersey taxpayers around $300 million per year in lost contributions to unemployment insurance, Social Security, Medicare, and income taxes.
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The New Jersey Employment Law Firm Blog


