Eatontown contractor owes $530K in back wages, fines after breaking rules for 181 workers

An Eatontown contractor has agreed to pay $530,000 in back wages and penalties after investigators found the company violated labor protections for 181 workers on a residential construction site, the New Jersey Department of Labor and Workforce Development said Tuesday.

Concerte Rising LLC also will be suspended from participating in public works projects for three years as part of an enhanced compliance agreement, the department said.

"Sadly, employers have gotten comfortable turning an illicit profit by exploiting disadvantaged workers,” said Mike Hellstrom, vice president and eastern region business manager for the Laborers’ International Union of North America, which brought alleged violations to the Labor Department's attention.

Concrete Rising, founded in 2019, has provided concrete for several projects in central and northern New Jersey, including 1 Journal Square in Jersey City and the Courtyard Suites in Woodbridge, according to its website.

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The compliance agreement stems for work at The Wave, a residential complex in Jersey City. Labor Department investigators visiting the site interviewed several workers, each of whom said they were paid in cash without statutory deductions; had a fee taken from their pay; and were not being paid appropriate overtime, officials said.

The Labor Department issued a stop-work order in April 2023. In addition to pay violations, the Labor Department said, it found violations including improper classification of construction workers.

Concrete Rising had hired subcontractor Signatura Laboris of Englewood, which was also issued a stop-work order. Concrete Rising officials didn't immediately respond to a request for comment.

One worker, Elmer Martinez Flores, said the agreement helped him reclaim lost wages and was a reminder that workers are entitled to protection under the labor law regardless of their immigration status.

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The compliance agreement calls for Concrete Rising to pay nearly $403,000 to workers and $127,739 in fees and penalties.

It also requires Concrete Rising to use a timekeeping system; hire what the Labor Department called an "independent integrity monitor" for 12 months to oversee the agreement's requirements; and take steps to ensure its subcontractors are complying with labor rules.

Michael L. Diamond is a business reporter who has been writing about the New Jersey economy and health care industry for more than 20 years. He can be reached at mdiamond@gannettnj.com.

This article originally appeared on Asbury Park Press: Eatontown contractor owes $530K in back wages, fines after breaking rules for 181 workers