HARTFORD — State labor inspectors cited three out-of-state contractors working on the expansion of a Walmart store in Naugatuck for misclassifying workers.
As a result, the Department of Labor issued stop work orders to VL Drywall of North Carolina, Kentucky Steel Erectors LLC of Kentucky, and Providence Building Co. Inc. of Illinois.
The labor department can shut down contractors and subcontractors under the employee misclassification law. Violators could be fined and even prosecuted criminally in some cases.
The law makes it illegal to classify employees as independent contractors to evade mandates regarding workers’ compensation, unemployment taxes and payroll reporting.
Companies issued a stop work order have 10 days to appeal the decision. Once a cited employer provides proof of appropriate coverage, work at that site is allowed to resume.
Work on a 23,000-square-foot addition at the store on New Haven Road is currently underway to turn the store into a Super Walmart with a full grocery store that is expected to be open 24 hours a day.