New Jersey AG Files First Worker Misclassification Lawsuit Under New Law

  • New Jersey AG Matthew J. Platkin and the New Jersey Department of Labor and Workforce Development filed a lawsuit against STG Logistics, Inc. and STG Drayage LLC (collectively, “STG”) alleging that the shipping and logistics companies misclassified employees as independent contractors in violation of state labor and benefits laws, which were amended in 2021 to authorize increased penalties for worker misclassification, among other things. According to the AG’s office, this is the first lawsuit filed under the new law.
  • The complaint alleges that STG systematically misclassified truck drivers as independent contractors; unlawfully deducted items from drivers’ pay, including fuel, tolls, and parking; failed to pay drivers minimum wage and sick leave; failed to carry sufficient workers’ compensation insurance; failed to make required contributions to state unemployment, disability, and workforce development funds; and failed to keep and furnish appropriate records of hours and wages.
  • The lawsuit seeks restitution for affected drivers, the payment of required contributions to relevant state funds, penalties, damages, and fees.
  • As discussed by Cozen O’Connor attorneys Chris Allen and Keturah Taylor in a recent edition of State AG Pulse, AGs have been particularly active in the labor and employment arena over the past few years, including with regard to alleged workforce misclassification.