NJ Penn Logistics Settles $300K Dispute Over Worker Misclassification

Delivery workers misclassified as independent contractors to receive restitution; NJDOL to monitor compliance.

In a significant enforcement of labor laws, New Jersey Attorney General Matthew J. Platkin and Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo have announced a settlement with NJ Penn Logistics, LLC, totaling nearly $300,000. The wholesale newspaper and magazine distributor was found to have misclassified over 105 workers as independent contractors rather than employees between 2018 and 2022.

“Companies that willingly erode the employment relationship make all of society worse off, at the expense of workers’ wages, benefits, and well-being,” said Attorney General Platkin. “My office, working in conjunction with Labor Commissioner Asaro-Angelo, refuses to tolerate this behavior. We will continue to investigate companies that violate our labor laws and regulations and hold them accountable.”

The misclassification came to light following an NJDOL investigation that began in 2021. The department determined that NJ Penn violated multiple state labor laws, including failing to pay wages, withholding employee wages, and neglecting to provide mandatory earned sick leave. The company also faced allegations of requesting job applicants' criminal histories—illegal under New Jersey law—and obstructing the NJDOL's investigation.

As part of the settlement, $182,188.52 will be distributed to affected workers, with payments due by February 1, 2025. An additional $114,000 will cover penalties, administrative fees, and costs. NJ Penn has also agreed to reclassify all current and future workers as employees under New Jersey’s labor laws, ensuring compliance with the New Jersey Unemployment Compensation Law and the Temporary Disability Benefits Law.

In a statement addressing the resolution, NJDOL Commissioner Robert Asaro-Angelo underscored the importance of enforcing labor protections. 

“When businesses violate New Jersey’s labor law, they exploit workers and deny them of their right to fair pay and benefits,” said Labor Commissioner Asaro-Angelo. “Our unprecedented collaborations with the Office of Attorney General continue to crack down on worker misclassification and protect workers’ rights and benefits. This not only boosts our workforce but maintains a level playing field for our businesses to compete and thrive.”

The settlement includes a two-year compliance monitoring period by the NJDOL. Should NJ Penn fail to adhere to the agreement, they could face additional penalties of up to $557,882.

The case was handled by Deputy Attorney General Nadya A. Comas, supervised by Labor Enforcement Section Chief Eve E. Weissman and Assistant Attorney General Mayur P. Saxena.

This resolution serves as a reminder of New Jersey’s robust commitment to safeguarding workers’ rights and enforcing fair labor practices.