New Jersey Settles $457,500 for Wage Violations in Janitorial Services

The recent enforcement action by the New Jersey Department of Labor and Workforce Development (NJDOL), along with the New Jersey Office of the Attorney General (OAG), underscores a significant movement towards ensuring labor compliance in the contracting realm. Two janitorial services companies, Affordable Quality Cleaning LLC and Affordable Quality Property Management Corp., have reached a hefty $457,500 settlement due to their engagement in wage violations, including unpaid overtime and improper travel time compensation. The settlements made public on July 16, 2026, represent an important reminder of the evolving landscape within which state agencies operate — one that increasingly prioritizes fair labor practices within contracted services.

This settlement specifically requires the payment of back wages to 68 employees and levies fines against the two companies for their failure to comply with New Jersey's wage and hour laws. Such actions reflect a vigilant regulatory environment and signify the rising expectations for contractors to maintain compliance with labor standards, particularly in state-sponsored procurements. The ramifications of this settlement are multifold, as they emphasize the necessity for service providers in New Jersey — especially those providing janitorial services or similar labor-intensive roles — to ensure that their payroll practices align with legal mandates to attain and sustain eligibility for government contracts. Failure to comply, as indicated in this case, may not only result in financial penalties but could also jeopardize future procurement opportunities.

The investigation that led to these violations revealed a systematic evasion of overtime laws through a paycheck-splitting scheme, whereby employees would receive hours dispersed across two related companies to escape paying overtime rates mandated by state law. This serves as a cautionary tale for both contractors and public sector clients regarding the critical importance of vendor oversight and compliance verification in the contract management process.

Moreover, the implications of this settlement extend beyond mere compliance; they highlight the ethical responsibility of contractors to ensure that all employees are fairly compensated for their labor. The quote from Acting Labor Commissioner Kevin D. Jarvis, "New Jersey law is crystal clear: workers must be paid for the work they perform," encapsulates the core principle driving these enforcement actions. It further signifies a broader ambition by the state to eradicate practices that contribute to the affordability crisis faced by many employees in New Jersey. In light of this case, procurement professionals are urged to conduct thorough assessments of potential vendors’ labor practices to ensure adherence to labor laws and maintain good standing for government contracts.

Given the consequences faced by Companies AQC and AQPM, procurement teams should thoroughly evaluate contracts with similar service providers for compliance. They should establish mechanisms for regular audits and enforce strict penalties for any deviations from labor regulations to mitigate risk in their procurement engagements. As highlighted by Attorney General Jennifer Davenport, the state will continue to leverage every available resource to ensure compliance and protect workers, emphasizing a collaborative effort between government and industry to uphold the integrity of labor practices in New Jersey.