A lawsuit has been filed against the general contractor and five subcontractors involved in the construction of a luxury high-rise at 88 Regent Street in Jersey City for multiple labor law violations, including under-the-table payments, failure to make timely wages, and failure to pay overtime. The lawsuit, announced by the New Jersey Attorney General’s office, involves allegations that the companies exploited workers during the project, which took place from 2018 to 2022.

“We’re taking action to ensure that workers receive the pay and benefits they are entitled to,” said Attorney General Matthew J. Platkin. “Our state’s construction workers make enormous contributions to our state’s economy, and they deserve the full protection of our state’s labor laws.”

Platkin emphasized the systemic issue of subcontractors taking advantage of workers to reduce costs for general contractors, highlighting the broader issue the lawsuit seeks to address. “Too often, however, general contractors in the construction industry rely on and benefit from subcontractors who take advantage of workers and deny them their rightful pay. Today’s lawsuit seeks a stop to this harmful practice.”

The general contractor, Grand Street Construction, oversaw the high-rise project between 2018 and 2022 and hired five subcontractors—BWK Construction, P&B Partitions, Blue Star Drywall, Drywall Builders Corporation, and Williams Drywall—for various aspects of the build. The lawsuit accuses these companies of failing to pay workers overtime, not providing earned sick leave, and failing to make contributions to New Jersey’s Unemployment Compensation Fund, Disability Fund, and Workforce Development Fund. Additionally, the companies allegedly failed to maintain proper wage and hour records.

The investigation, initiated by the New Jersey Division of Labor in July 2021 following a worker complaint, identified 34 companies contracted for work on the building. Of those, 16 companies were found to have violated state labor laws. Grand Street Construction and the five subcontractors are the last remaining companies that have not reached a settlement with the state, according to officials.

Although Grand Street Construction did not directly employ workers on the site, it subcontracted drywall work to P&B Partitions and BWK Construction. These two subcontractors then hired additional subcontractors—Blue Star Drywall, Williams Drywall, and Drywall Builders—to perform various tasks.

Neither Grand Street Construction nor the three main subcontractors (BWK Construction, P&B Partitions, and Blue Star Drywall) provided immediate comment on the lawsuit. Drywall Builders and Williams Drywall also did not respond to requests for comment. A representative from Williams Drywall declined to comment on the allegations.

Originally reported by Matthew Enuco in NJ.