NEW JERSEY — New Jersey Attorney General Matthew J. Platkin and Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo have filed a lawsuit against a general contractor and five subcontractors involved in the construction of a luxury apartment complex in Jersey City, citing extensive violations of state labor laws.
The suit centers on the development at 88 Regent Street, where Grand Street Construction, LLC (GSC), the general contractor, and subcontractors BWK Construction LLC, P&B Partitions Inc., Blue Star Drywall Corp, Drywall Builders Corp, and Williams Drywall, LLC are accused of misclassifying workers and failing to pay legally mandated wages and benefits.
According to the complaint, the six companies paid workers off the books, typically via cash or check, and failed to comply with wage, benefit, and employment classification laws. The lawsuit seeks unpaid wages, overtime, damages, penalties, and back contributions to state benefits funds.
The State’s legal action follows a 2021 inspection of the job site by NJDOL, the Department of Treasury, and the Department of Banking and Insurance. That inspection revealed 34 contractors and subcontractors performing work ranging from plumbing and HVAC to scaffolding and drywall. Of those, 16 were found in violation of wage, benefit, and tax laws. While most resolved their liabilities with the state, GSC and five subcontractors refused to comply, prompting the current legal action.
The lawsuit alleges that the defendants:
- Failed to pay minimum wage and overtime;
- Failed to maintain or produce records on hours, wages, and earned sick leave;
- Failed to provide earned sick leave;
- Failed to contribute to the state’s Unemployment Compensation Fund, Disability Benefits Fund, and Workforce Development Funds;
- Improperly classified workers as independent contractors; and
- In one instance, unlawfully employed a minor for construction work.
GSC did not directly hire workers but subcontracted drywall responsibilities to P&B and BWK, who further subcontracted to Blue Star, Williams Drywall, and Drywall Builders.
The lawsuit is grounded in legislation enacted under Governor Phil Murphy’s administration, which expanded NJDOL’s authority to hold general contractors accountable for their subcontractors’ labor violations. These laws aim to address the widespread issue of employee misclassification, a practice that deprives workers of lawful benefits and reduces tax revenues.
In 2021, the Century Foundation estimated New Jersey lost over $329 million due to misclassification through unpaid taxes and benefits. A separate 2022 report found that while 26% of working families in the state rely on public assistance programs, the rate among construction workers was notably higher at 33%.
The State is seeking a court judgment affirming the employment status of affected workers, recovery of unpaid wages and benefits, and financial penalties against the six firms. Legal representation in the case is provided by the Division of Law within the Office of the Attorney General.