New London — Construction on the Texas Roadhouse restaurant at the New London Shopping Center has resumed after a one-month work stoppage ordered by the state.

The state Department of Labor said it issued a stop-work order May 22 after a subcontractor at the construction site was cited for failure to carry worker's compensation insurance and paying workers off the books. Construction resumed last week after the general contractor, Buffalo Construction Inc., was found to be in compliance with state laws.

J&B Construction of Kentucky, the framing subcontractor cited by the state, was not reporting taxes correctly and had been keeping payment records that were unclear, the state said. It faces $12,000 in fines for work site violations based on 13 employees working there, according to department spokeswoman Nancy Steffens.

"Under state statute, employers are fined $300 per employee, per day for each day they are in violation," Steffens said in an email. "Our understanding, but not confirmed, is that Buffalo Construction hired some of the employees from J&B to work on the project."

The state gave Buffalo Construction its go-ahead to resume work June 18 after an investigation.

"When employers are not playing by the rules, honest employers are hurt, employees are hurt, and the state experiences lost revenue," Steffens said.

Workers without insurance hurt on the job become the responsibility of the state and cost taxpayers money, she added.

A message to a Texas Roadhouse media representative seeking comment was not returned.

Texas Roadhouse, being constructed between a now-closed Pizza Hut and a tire center, will be the first of the popular chain restaurants to locate in southeastern Connecticut and is expected to open in August, according to a website. The 280-seat restaurant will serve lunch and dinner seven days a week.

l.howard@theday.com

Twitter: @KingstonLeeHow