July 29, 2010 | No Comments
Posted by admin
In 2007, New Jersey became the first state to enact legislation giving a private right of action to workers who claim to have been denied employment because of a contractor’s knowing misclassification of its laborers as independent contractors. In a recent suit filed this month, N.J. Regional Council of Carpenters v. D.R. Horton, the Union alleges its workers were denied employment opportunities in favor of undocumented workers disguised as independent contractors by the homebuilder in an attempt to avoid the payment of taxes and employee benefits. This is the first such suit filed under the 2007 New Jersey Construction Industry Independent Contractor Act. The Act permits the displaced workers to recover damages, including lost wages and attorneys’ fees.
Interestingly, this suit was filed as a class action, with a putative class including current and former hourly employees of the builder. This action will be watched closely and could dramatically reshape the landscape of the construction industry in New Jersey.