Companies that provide moving services inherently come into their customers’ lives at a time when the individual is particularly vulnerable. That is, the person is leaving behind the area they are familiar with and moving to a new location where they may not have the same social and professional connections. Furthermore, they are entrusting the movers with some of their most valuable possessions in terms of monetary value and personal sentiment.

In the State of New Jersey, the Division of Consumer Affairs regulates a number of types of businesses that regularly interact with consumers. Public movers and warehousemen make up only a few of the industries that are regulated by the division. Moving companies must ensure that they can satisfy all state and federal regulatory requirements or they may face civil fines and other penalties.

The Jayson Law Group can assist your moving company with satisfying all state and federal regulations and standards.

What are moving companies required to do to comply with the law?

State law requires that all movers who provide intrastate  moving services, from one location to another within the borders of New Jersey, to obtain a license from the New Jersey Division of Consumer Affairs. Companies must designate a registered agent in the state, maintain insurance against injury and property damage, carry workers’ compensation insurance, have an in-state address and maintain liability insurance for the cargo it carries. Additional disclosures that must be made when registering include:

• The business name
• The business’ form of organization
• All addresses from which the company does business
• The number of vehicles
• Where vehicles are parked or stored.
• Financial and child support obligation inquiries
• The identity of members, officers, directors and others with a 10 percent or greater ownership stake.

As per  N.J.S.A. 13:44d-2.1 (g) & (h), all moving companies doing business in New Jersey must also comply with state vehicle identification & lettering laws. The text of the law states that all trucks must be identified by “conspicuous” lettering on both the driver’s and passenger’s side of the vehicle. The lettering must be a minimum of three inches high. Additionally on both sides of the truck’s trailer the name of the licensed individual or organization must be displayed along with the specific words “License Number” of “Lic. #” with the actual license number found on the certificate following.

Every year companies are identified, caught and fined by compliance stings

To increase compliance with state law and better protect consumers, the division of Consumer Affairs regularly holds stings in which its agents pose as New Jersey residents seeking moving services for an in-state move. A February 2015, sting coordinated with the NJ State Police, US DoT’s FMCSA, and Immigration and Customs Enforcement (ICE)  identified 19 moving companies that violated some aspect of the state’s regulatory standards.

In one of the latest stings, state investigators posed as an individual looking to move their household from Wyckoff, NJ. However as the moving companies arrived at the site, it became clear that the movers would not be working that day. As each truck pulled into the lot, state police would stop the vehicle and explain to the driver what was going on. In one instance, the driver of a moving truck saw the sting and attempted to make a quick U-turn and avoid the sting. State police cruisers quickly caught up to the van and forced it to return to the site of the investigation. The driver, whose company would be cited as an unlicensed mover, said that he thought he was driving onto a movie set and did not want to ruin the shot.

Each of these 19 moving companies now faces a fine of $2,500, though the companies retain the right to appeal the fine and the fine  may be reduced if the company applies for licensing within 30 days. 10 arrests were also made with 7 of the arrests being immigration related. Problems identified in stings can include:

• Unlicensed moving companies
• Insufficient lettering or identification on the moving truck
• Moving truck drivers without a drivers’ license
• Failure to obtain federal operating authority to perform interstate moves
• Failure to register and insure moving company vehicles
• Use of a rental moving truck. Rental trucks are impermissible.
• Dangerous vehicle safety violations
• Failure to provide an in-person written estimate for the job

While no business owner relishes performing regulatory compliance reviews, more than 310 companies have already registered and become compliant. Those companies that choose not to comply with the state regulatory regime place themselves at a competitive disadvantage as New Jersey consumers are well-informed and understand the important of working with a reputable company. Furthermore, the company places itself at risk of facing serious civil consequences.

The Jayson Law Group can handle the necessary regulatory filings so that you can focus on growing and developing your business. To schedule a free consultation, contact our firm at 908-768-3633 or contact us online.