Labor Department cites Wal Mart Renovation Firm

The Connecticut Department of Labor’s Division of Wage and Workplace Standards issued Stop Work orders to 13 companies working at construction project sites in Greenwich, Danbury, New London, Preston, Naugatuck, and Simsbury during the period of April 12 to May 7, State Labor Commissioner Glenn Marshall announced today.

 The Labor Department does this when companies misclassify workers as "independent contractors." The department says companies do this to avoid their legal obligations to pay federal and state employment law taxes, such as workers' compensation, unemployment taxes and other payroll taes.

The stop work orders halt work at the site until the problem is fixed. The orders can carry a $300 per day fine for each day the company doesn't cover workers' compensation coverage. On May 2, the Labor Department cited BLM Restoration of Connecticut at its project site, of Danbury.