First announced in November 2022, the New Jersey Department of Labor and Workforce Development’s Wage and Hour Division recently completed a strategic enforcement initiative involving the laundromat industry, which included a comprehensive analysis of industry practices and areas identified for “corrective action.”
In April 2023, the NJDOL announced the results of its first strategic enforcement investigation. NJDOL investigators visited 20 laundromat locations throughout New Jersey, with wage and hour violations being discovered at all but one store. The investigators further determined that more than $56,000 in wages were owed to employees at those respective businesses, and that many workers had not received sick leave they have lawfully accrued. In addition to the back wages, $143,000 in penalties and fees were assessed to employers based on the investigation findings.
As a result, the NJDOL reached out to the Coin Laundry Association to ensure no workers are denied any of the earnings or benefits to which they’re entitled under the state’s labor laws.
These laws include – but are not limited to – ensuring workers are:
- Paid on the books.
- Declared employees, thus making them eligible for unemployment, workers’ compensation, and temporary disability and family leave insurance – unless the employer can prove the worker meets the requirements for independent contractor status.
- Compensated at the state minimum wage rate or more.
- Paid for overtime after 40 hours of work.
- Provided paid sick and family leave time.
“We believe all small businesses should adhere carefully to all state and federal labor laws and requirements,” said Brian Wallace, president and CEO of the Coin Laundry Association. “We look forward to facilitating more education for our members with the aim of taking the best possible care of laundromat employees.”
The NJDOL asked CLA to share information and guidelines on how laundromat owners may ensure they are in full compliance. CLA is taking significant measures to share labor law requirements and best practices with laundromat owners. These include:
- Posting current laws and regulations online at www.coinlaundry.org.
- Sharing an informational video message with all CLA members and subscribers, via social media and email.
- Including compliance information in CLA publications.
- Co-hosting a webinar with representatives of the NJDOL on June 2.
CLA’s mission has always been to advance the self-service laundry industry and improve the customer experience by providing store operators with the industry research, education, and other resources required to be better, more successful business owners – and this includes the fair treatment of laundromat employees.
[Read the full NJDOL press release here.]
