Drivers to Receive $2.2 Million Total in Back Wages

TRENTON — Attorney General Jennifer Davenport and Kevin D. Jarvis, Acting Commissioner of the New Jersey Department of Labor and Workforce Development (NJDOL), reached a settlement with STG Logistics, Inc., STG Drayage, LLC, and other subsidiaries resolving allegations that the shipping and logistics companies misclassified hundreds of truck drivers as independent contractors in violation of multiple New Jersey labor laws.

This settlement resolves the first lawsuit filed under New Jersey’s 2021 law that permits the State to file suit in New Jersey Superior Court against employers who have misclassified workers as independent contractors.

Under the settlement agreement, truck drivers and the State will receive at least $2,775,000—despite STG having filed for bankruptcy earlier this year, which resulted in many debts being canceled. The settlement amount is considered “priority” under both the bankruptcy code and the settlement agreement, ensuring workers are compensated ahead of other creditors.

“This was our first-ever Superior Court misclassification case, and we saw it through to the end—surviving a company sale, a bankruptcy, and years of litigation,” said Acting Labor Commissioner Kevin D. Jarvis. “The message is clear: New Jersey will use every tool at our disposal to protect workers, and we’ll...