| Photo by Ernie Journeys on Unsplash
NEWARK, NJ – Twenty-two employment/personnel service firms operating unregistered New Jersey businesses have settled with Attorney General Matthew J. Platkin and the Division of Consumer Affairs (DCA). Under the settlement terms contained in 22 Consent Orders filed by DCA, the firms were assessed a total of $62,000 in civil penalties ranging from $2,000 to $8,000.
The firms, whose services include executive-level employment placements and hourly labor assignments, agreed to the settlements to resolve DCA’s investigation into whether their failure to register with the Division’s Regulated Business Section, which was required by law, violated New Jersey’s consumer protection laws and regulations.
Platkin emphasized that New Jersey firms must comply with the laws to protect the public and ensure compliance with industry standards. “That begins,” he said, “with being properly registered,” adding the fines announced to send a clear message that “skirting the registration process and unlawfully operating outside of DCA regulation and oversight will not be tolerated.”
Cari Fais, Acting Director of DCA, also said, “Ensuring that employment and staffing services firms are properly registered is essential to DCA efforts to enforce the laws that provide critical protections to workers.”
“We will continue to investigate and take action against unregistered firms to bring them into compliance,” said Fais.
Of the 22 firms, DCA said two were operating as temporary help service firms, providing temporary personnel on their payroll to employer clients for temporary work assignments. Twenty were operating as consulting/temporary help service firms, acting as temp help service and consulting firms/headhunters that procure interviews for job seekers with prospective employers and for prospective employers with job seekers.
The firms entered into Consent Orders with DCA to resolve alleged violations of the New Jersey Consumer Fraud Act, the Private Employment Agency Act, the Regulations Governing Personnel Services, the Regulations Governing Consulting Firms, and/or the Regulations Governing Temporary Help Service Firms.
In addition to accepting the civil penalties, the firms also agreed to stop engaging in any unfair or deceptive acts or practices, comply with all applicable state and federal laws, register their businesses within 30 days of the settlement, and maintain annual registration, as required by law.
