Investigation Process
NJDOL reviews every complaint to determine how best it should be handled.
Generally, we process complaints based on the order we receive them, and assign them based on where the employer is located.
We cannot conduct a full-scale investigation into all complaints, but there could be other ways to resolve them.
During an investigation, an investigator usually takes these steps:
- Initial contact: When an investigator gets a complaint, they will usually contact the person who submitted the complaint first. They will let them know that they are assigned to the case, and that they will be conducting an investigation pursuant to their complaint.
- Inspection: The investigator uses both worker and employer evidence to determine if the employer violated the law. The investigator may visit the employer in person or require the employer to appear at a suitable location and demand related records, such as pay stubs, work schedules, and timecards.
- Review of records:
- The investigator will review the employer’s records. It is the employer’s responsibility to maintain records. Both employer records and employee evidence are factored into the investigation.
- Usually, the investigator will want to see the employer’s records for at least 24 months prior to the inspection. For most laws, employers have to keep up to 6 years of records.
- In every Wage and Hour investigation, the employer gets due process. This means the employer can defend themselves and provide any evidence to show they didn’t violate the law.
- Worker-authorized permission to use name: In certain cases where a review of employer records does not resolve the investigation (this may occur in a situation when a worker is paid in cash “off the books”), we may need to share the worker’s name with the employer to get more information. This is a last resort, and the investigator will make every attempt not to use the worker’s name. It is always the worker’s choice to give permission. They would sign a form that gives permission to use their name.
- Investigation updates:
- NJDOL will provide a point of contact who can give you updates on the complaint.
- NJDOL’s policy is to provide an update on the complaint every 30 days during an ongoing investigation.
- If a field investigator requests additional evidence, please respond as soon as possible.
- Witness statements: We might gather witness statements from other workers at the workplace.
We may decide it’s best to resolve a complaint by mail or phone. Complaints that are handled by mail or phone usually only involve one person (for example, a former employee who did not receive their last paycheck) or the complaint is limited in scope. These contacts are referred to as Conciliations because no independent fact finding occurs.
If the complaint is handled by mail
- The employer will be sent a copy of the complaint and given the opportunity to either pay the wages due or explain why the wages are not due.
- In this case, we will have to share an employee’s identity with the employer. We will always ask permission before doing so.
- If the employer does not agree that any wages are due, the complainant will be notified and will have the option of pursuing the matter through the Wage Collection proceeding process or via a court of appropriate jurisdiction. (See section on Wage Collection proceedings below.)
- The Wage Collection Unit conducts formal hearings to resolve disputes between employers and employees of up to $50,000, plus any damages that the law allows.
- Wage Collection hearings resolve issues related to retaliation, wages, commissions, bonuses, or other benefits.
- The proceedings are recorded. Employers and employees are sworn in and required to provide evidence to prove their claims.
- Wage Collection is an administrative proceeding. A worker is not required to be represented by a lawyer. An advocate or another trusted person may attend the hearing to support the worker, but they cannot represent the employee or testify unless called as a witness.
- At the hearing, the Wage Collection Referee will gather all the relevant facts and make a decision. Either the worker or the employer may appeal a Wage Collection decision to the Law Division of the Superior Court of New Jersey.
If you file a complaint about a law we don’t enforce, we will direct you to the right agency.
Learn more about what we do not cover here.
When it is determined that an employee is due back wages or when it is determined that there is a violation of any of the laws and regulations under the jurisdiction of the Division of Wage and Hour Compliance, the employer is sent an Assessment Letter. This letter spells out in detail the wages, fees, and penalties which are due.
“Wages” are unpaid wages that the investigator has determined are due. The wages may represent unpaid hours of work, unpaid overtime hours, or payment of less than prevailing wage. This part of the Assessment Letter is self-explanatory and includes the name or names of the persons to whom wages are due.
The employer has the right to either refute the findings or amounts due or agree to pay the back wages we allege are due. They may pay these wages directly to the employee or submit payment to the Division, and, in turn, the Division will disburse the wages. Employers should follow the instructions on the notice that explain how the checks must be prepared and/or what proof of payment must be supplied to the Division.
If an employer also owes a fee, the fee will be a percentage of the wages that are due. The employer will not be charged fees if no wages are due. The amount of the percentage varies depending upon the employer’s violations history.
An employer may be assessed a penalty if it has been determined they have violated certain parts of the law. If the employer also owes a penalty, the amount of the penalty will vary depending upon the severity of the offence, the number of employees impacted, and the employer’s history of violations. Each employer has to be treated individually, and there is no "one size fits all" penalty schedule.
The penalties are not determined by the individual investigator, and it is not within the investigator's jurisdiction to discuss the amount of penalties. The penalties are applied after the investigator submits the case and the supervisor reviews the case and the employer history and determines the amount to be assessed.
Some penalties are statutory in nature and are may not be subject to negotiation.