- New Jersey AG Jennifer Davenport and the Department of Labor and Workforce Development (NJDOL) reached a $7 million settlement with PDX North, Inc. to resolve allegations that it violated the Unemployment Compensation Law and Temporary Disability Benefits Law by misclassifying delivery drivers as independent contractors.
- The settlement resolves four NJDOL audits from 2006 through 2019 that found the last-mile auto parts distributor improperly classified its drivers to avoid paying required state contributions.
- Under the agreement, PDX North must pay $5 million, with another $2 million to be forgiven if it complies with the settlement through 2029. The company must also classify drivers as employees under state law unless it can show they satisfy the statutory “ABC” test for independent-contractor status.
- New Jersey’s settlement is the latest development in a broader wave of worker-misclassification enforcement by states, including California’s $10 million judgment against a home care company, which we previously reported