NJ Attorney General and Labor Commissioner Sue STG Trucking for Worker Misclassification

In a Landmark Case, the State Targets Shipping Giants for Alleged Illegal Labor Practices, Seeking Reparations for Over 300 Drivers

In an unprecedented legal move, New Jersey Attorney General Matthew J. Platkin and Labor Commissioner Robert Asaro-Angelo have initiated a lawsuit against STG Logistics, Inc., and STG Drayage, LLC. The case, filed under a recent worker protection law, accuses the companies of misclassifying over 300 truck drivers as independent contractors, thereby depriving them of essential employee benefits and rights.

Morristown, NJ - Attorney General Matthew J. Platkin and Commissioner Robert Asaro-Angelo of the New Jersey Department of Labor and Workforce Development (NJDOL) have filed a groundbreaking lawsuit against STG Logistics and STG Drayage. This marks the first utilization of a 2021 law allowing the State to pursue legal action against employers who wrongly classify workers as independent contractors in the New Jersey Superior Court.

The lawsuit aims to end the alleged misclassification of employee truck drivers and secure millions in back wages, penalties, and fines. This practice has led to drivers sometimes receiving less than the state's minimum wage and facing negative net pay due to excessive deductions.

New Jersey's labor laws presume workers to be employees unless employers can prove otherwise based on the "ABC test." This law aims to protect workers' rights, including minimum wage, overtime, and discrimination protection, and to maintain a fair playing field for law-abiding employers.

Attorney General Platkin condemned the companies’ practice of misclassifying workers, stating, "These are national, profitable corporations...padding their profits with illegal labor schemes." 

Labor Commissioner Asaro-Angelo added, "Misclassifying employees will not be profitable, nor overlooked."

The investigation, initiated by NJDOL in 2019, revealed that the defendants failed to meet the legal criteria for classifying their workers as independent contractors. The lawsuit alleges significant control over drivers and their work, violating multiple New Jersey labor laws.

In response to a prior NJDOL audit, XPO, the former operator of the facility now run by STG, paid $893,671.28 in 2020 for failing to make required fund contributions from 2015 to 2018. However, the misclassification and non-compliance issues have persisted under STG's management.

Represented by the Office of the Attorney General’s Division of Law, the NJDOL encourages misclassified workers to learn about their rights at myworkrights.nj.gov and advises businesses on legal requirements at nj.gov/labor.