NJDOL Reaches Landmark Compliance Agreement to Protect Rights of Drywall Workers

NJDOL reaches a compliance agreement with Donald Drywall, L.L.C., after numerous investigations have found that the subcontractor has committed numerous violations under wage and hour, sick leave, and employee misclassification.

The Wage and Hour Division found 48 misclassified employees worked for these companies in Hudson County. In addition, Donald Drywall, L.L.C. failed to pay their employees minimum wage every two weeks. They found that these employees were paid in cash and off the books and lacked workers’ compensation and overtime benefits.

Labor Commissioner Robert Asaro-Angelo speaks out about these issues. He states that these investigators are dedicated to solving worker exploitation. He is proud of their collaboration with employers and employees. These efforts have already brought lasting changes to industries with high non-compliance rates.

NJDOL’s Wage and Hour Division has developed a proactive method called The Strategic Enforcement Method, which focuses on industries with a history of non-compliance with labor laws and those whose employees are less likely to file complaints with the Department.

  • They were given a stop work order which allowed them to come up with a compliance agreement; this agreement is detailed as follows:
    • A 3-year prohibition period from working on public construction contracts
    • Submission of payroll records for all it’s employees
    • Implementation of compliance measures that helps to ensure that all their employees are correctly classified and paid on the books. This also ensures that they receive employment benefits.
    • The company will also list the sick leave on the pay stub, which helps these employees see their right to paid used and unused sick time.

Donald Drywall is set to pay back $167,060.60 in payback wages, damages, and penalties that he has accumulated over the years. 

Investigators continue to make unannounced visits to investigate drywall contractors. Over the years, they have found a pattern in which subcontractors performing drywall work have had significant issues treating their employees fairly with wage issues. These employees are guaranteed that they are not at fault and will be protected if they report these issues to the NJDOL and cooperate in an investigation.