New York Construction Report staff writer
The Laborers’ International Union of North America (LIUNA) has filed a lawsuit seeking more than $2 million in unpaid wages and damages on behalf of construction workers who worked on two major Jersey City developments but allegedly were not paid for weeks of work.
The lawsuit, filed Aug. 12 in New Jersey Superior Court by LIUNA Local 3 and the Laborers’ Eastern Region Organizing Fund (LEROF), is believed to be the first action brought by a labour union under New Jersey’s “up-the-chain” wage liability law that is intended to allow construction workers to pursue unpaid wages beyond their direct employer when other parties in the contracting chain may be legally responsible.
“This case is about a simple principle: if you work, you deserve to be paid,” said Mike Travostino, spokesperson for LIUNA Local 3. “New Jersey made a promise to construction workers when it enacted the up-the-chain liability law. Today, we are asking the courts to ensure that promise has real meaning. No worker should lose weeks or months of wages simply because a subcontractor disappears into the night while others in the contracting chain continue to profit.”
The lawsuit names general contractor AJD Construction and subcontractor Concrete Rising in connection with work performed at Kushner Companies’ One Journal Square project and Namdar Group’s 35 Cottage Street development.
According to findings by the New Jersey Department of Labor and Workforce Development, more than 240 workers are owed more than $716,000 in unpaid wages. That amount does not include statutory liquidated damages, penalties and other remedies that could be available under state law.
The workers’ direct employer subsequently filed for bankruptcy, leaving them with limited options for recovering their wages, according to LIUNA.
“Construction workers build our skylines, our infrastructure and our communities,” said LIUNA Local 3 Business Manager Paul Roldan-Eng. “They should never have to fight just to receive the wages they have already earned.
“This lawsuit is about restoring dignity to honest work and making sure every company in the contracting chain understands that paying workers is not optional.”
In a news release, the union said the case will test the Legislature’s intent to close gaps that have historically allowed responsibility for wage violations to be shifted down the construction contracting chain.
“For too long, responsibility has been pushed down the contracting chain while accountability has been pushed away,” said Mike Hellstrom, vice-president and Eastern regional manager of LIUNA. “This law changes that. Companies that benefit from construction projects should not be able to wash their hands when workers are left unpaid.”
Jersey City Mayor James Solomon, who joined LIUNA leaders for the announcement, also expressed support for the workers.
“Jersey City’s progress must not be built on the backs of exploited workers,” Solomon said. He said the city intends to pursue strict compliance with payroll tax requirements and hold developers accountable for their obligations.”
The lawsuit is available here.
