Paterson Luxury Car Shipping Workers Win $364,000 in Back Wages Settlement

In a landmark case against Horseless Carriage Carrier, Inc., the New Jersey Department of Labor and Attorney General enforce labor laws to protect misclassified drivers.

PATTERSON, N.J. - Attorney General Matthew J. Platkin and the New Jersey Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo have announced a significant legal settlement with Horseless Carriage Carrier, Inc., based in Paterson, New Jersey. The settlement addresses violations of labor laws involving the misclassification of employee drivers as independent contractors and other unlawful practices.

“When employers misclassify employees as independent contractors, they are exploiting workers and undermining our fair labor practices,” said Attorney General Platkin. “Workers lose their legal protections and benefits, and as a result have weaker financial security and workplace rights. In New Jersey, we demand that employers abide by our laws or face the consequences.”

The investigation, triggered by an employee complaint and conducted by NJDOL's Wage and Hour Division, covered incidents from 2017 to 2019. It revealed that Horseless Carriage Carrier had incorrectly classified eight drivers, leading to improper pay deductions and inadequate recordkeeping. As a result, these drivers were deprived of benefits typically afforded to employees, such as minimum wage, overtime, and unemployment benefits, among others.

Under the terms of the agreement, Horseless Carriage Carrier will pay a total of $455,000. Of this, $364,000 will be distributed among the affected drivers as back wages, representing 80% of the total settlement, with the remainder covering fees and penalties returned to NJDOL. This case highlights the broader issue of employee misclassification, which undermines fair competition and workers' rights.

“This case is yet another example of a company that failed to comply with state wage and hour laws to make an extra profit by taking shortcuts at the expense of their workers,” said Labor Commissioner Robert Asaro-Angelo. “As we’ve shown time and again – with our partners in the Attorney General’s Office – this business model won’t work, and ultimately costs the company a lot of money. The lesson here is, play by the rules.”

The settlement also closes a chapter for Horseless Carriage Carrier, which sold its assets to McCollister’s Global Services, Inc., in October 2022, exiting the transportation and logistics industry. This case serves as a reminder of the critical need for businesses to adhere to labor laws to ensure fair treatment of workers and maintain a level playing field in the industry.