This month marks the first anniversary of the Workplace Accountability in Labor List, known as "The WALL," a compliance tool created by the State of New Jersey to publicly expose and ban from public contracts companies that have shortchanged their workers or failed to pay contributions, penalties, and interest owed to the state’s departments of Labor and Workforce Development (NJDOL) and Treasury. Despite judgments against them, these businesses have yet to take the necessary steps to fully resolve their outstanding liabilities and comply with state wage, benefit, or tax laws.
The NJDOL's system for naming and shaming "bad actors" and barring them from competing for local and state contracts launched with 36 businesses in September 2023. Now, 201 businesses are listed on The WALL. The listing includes businesses across various sectors such as construction, manufacturing, retail, restaurants, logistics, and transportation.
"The Murphy Administration is lifting the veil of secrecy that more than 200 bad actors operated under to exploit New Jersey workers and gain an unfair competitive edge," said Labor Commissioner Robert Asaro-Angelo. "Collectively they owe over $20 million in combined unpaid wages to workers and back taxes and contributions. The WALL sends a clear message that we will not allow businesses to be built on the backs of wronged workers – New Jersey will know the names and reputations of these businesses that violate the rights of workers, and they will be held accountable."
"The goal of The WALL is to bring businesses into compliance with the law," said NJDOL Office of Strategic Enforcement and Compliance (OSEC) Director Peter Basso. "In an ideal situation, our state wouldn’t need this tool, and workers would be paid what they are owed. We applaud the businesses that have stepped forward during the first year of The WALL initiative to do what is right by paying their employees and resolving outstanding fines and contributions with the state."
To date, NJDOL has recovered $498,216.38 in unpaid liabilities from businesses posted on The WALL or those that took immediate action to avoid being listed after being put on notice by NJDOL. One business was removed from The WALL in August after paying its liabilities in full. Businesses are given 20 days from receiving written notice from NJDOL to pay in full or challenge their pending placement on The WALL.
This month alone, five businesses were added to The WALL. They collectively owe a total of $753,702.18 in unpaid wages, fines, and penalties to workers and the state. Unpaid violations range from $10,668.02 to $760,938.64 for the 201 businesses that violated New Jersey law.
"Research shows that public exposure deters employer violations," said Terri Gerstein, Director of the NYU Wagner Labor Initiative at NYU's Robert F. Wagner Graduate School of Public Service. "The WALL is an important measure that helps empower workers with information about employers. It’s also an important tool for ensuring that taxpayer money does not fund public contracts with scofflaws who gain an unfair competitive advantage by breaking all the rules. New Jersey showed bipartisan leadership in creating The Wall; more states should follow their example."
The WALL initiative was established through bipartisan action (S-4226) in 2020 as part of an effort to strengthen NJDOL’s enforcement tools for combatting worker exploitation. The legislation gives NJDOL power to protect fair-minded businesses across the state from employers who undercut their workers.
Posting on The WALL is separate from other accountability measures such as public contractor debarment or business license suspension or revocation. State procurement officers must cross-reference The WALL before awarding public contracts.
Questions about THE WALL should be directed to OSECInquiries@dol.nj.gov.
For a comprehensive list of frequently asked questions about THE WALL visit nj.gov/labor/wall.
