New London — Two downtown bars were issued stop-work orders Thursday night after they were found not to be in compliance with labor laws, according to police and state labor officials.

The Bulkeley House at 111 Bank St. and The Exchange at 74 Bank St. were closed after the state Department of Labor's Wage and Workplace Standards Division found that they were paying workers in cash and were unable to provide any payroll records.

Nancy Steffens, spokeswoman for the Department of Labor, said while it is not illegal to pay cash wages, a business, however, must keep payroll records to show that employees are being paid proper amounts and that the required taxes are being paid.

Steffens also said The Bulkeley House could not provide any proof of workers' compensation coverage.

Steffens said investigators from the agency's Wage and Workplace Standards Division were in the Bank Street area Thursday to check on several businesses, including restaurants/bars and convenience stores.

New London police assisted the investigators.

Steffens said the establishments can reopen when they can show compliance with the violations.