NJ Files Lawsuit Against TransCare, LLC for Worker Misclassification and Wage Violations

State alleges TransCare mislabeled drivers as independent contractors to avoid wage and benefit obligations.

NEWARK, N.J. — New Jersey Attorney General Matthew J. Platkin and Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo announced a lawsuit filed against TransCare, LLC, a medical transport company based in Berlin, and its owner, Dennis Young Jr., for allegedly misclassifying drivers as independent contractors instead of employees. The lawsuit, filed in the Superior Court, accuses the company of violating several state labor and employment laws by misclassifying at least 52 drivers who provided non-emergency medical transportation.

“Over the past year, and in conjunction with our colleagues at Labor and Workforce Development, we have been aggressively investigating this type of wage theft,” said Attorney General Platkin. “If companies think they will save money by cheating their employees of their rightful wages and benefits, they should think again, because they will still have to pay—and pay more than they would have originally—when we find them.”

The NJDOL’s investigation, launched after multiple driver complaints, found that TransCare exercised significant control over drivers' work, including dictating their schedules and pay rates and requiring unpaid training. Additionally, drivers reported to a designated parking lot where they picked up company-branded vehicles, used the ModivCare WellRyde app to receive assignments, and returned vehicles and timesheets to the same location.

The complaint seeks a court order to reclassify TransCare’s drivers as employees and stop misclassification practices. It also demands penalties and damages for alleged violations, including failing to pay minimum wage and overtime, misclassifying workers, neglecting to maintain required records, and failing to provide earned sick leave or contribute to the Unemployment Compensation Fund.

“In New Jersey, we are proud to protect workers from this type of blatant misbehavior,” said Labor Commissioner Asaro-Angelo. “The state is actively addressing employee misclassification in the transportation sector and in all industries in New Jersey, and we expect companies to treat their employees in accordance with the law.”

Worker misclassification denies employees access to rights and protections like minimum wage, overtime, workers’ compensation, and family leave, while also disadvantaging compliant businesses. The lawsuit is being handled by the Office of the Attorney General’s Division of Law, with representation by Deputy Attorneys General Marcus Mitchell and Egle Dykhne, and oversight from several labor enforcement leaders.