On July 10, 2009, new amendments to the New Jersey Workers’ Compensation Law went into effect. The law imposes severe monetary and injunctive penalties if a covered employer misrepresents any employee as an independent contractor or provides false, incomplete or misleading information concerning its total number of employees.
 
Under these changes, the employer:  a) will be deemed guilty of a fourth degree crime; b) will be subject to the Law’s existing monetary penalties which impose a penalty of up to $5,000.00 both for an initial violation exceeding 10 days and for each subsequent 10 day violation; and (c) will be subject to a stop-work order issued by the New Jersey Department of Labor and Workforce Development (NJDOL) Workers’ Compensation Division within 72 hours after determining that any such violation has occurred. 

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