NJDOL Announces Recovery of More than $2.5 Million for Truck Drivers
On July 29th, 2026, the New Jersey Department of Labor (NJDOL) announced that more than $2.5 million in compensation has been recovered for trucking industry workers in a major wage and hour claim. The employees in question, mostly truck drivers, were improperly classified as independent contractors. Here, our New Jersey wage and hour attorney provides a more comprehensive overview of the case.
Wage and Hour Settlement Resolves a Major Worker Misclassification Case
The NJDOL and the New Jersey Attorney General confirmed that they reached a settlement with STG Logistics, Inc., STG Drayage, LLC, and several other affiliated entities. As part of the wage and hour settlement agreement, the companies will pay at least $2.775 million to resolve allegations that hundreds of truck drivers were unlawfully treated as independent contractors. Of that amount, approximately $2.22 million will be distributed directly to the affected drivers. The settlement also includes an additional $555,000 which will be paid to New Jersey in the form of wage penalties and will help to support the state’s unemployment compensation fund and its disability benefits fund.
An Investigation Uncovered Multiple Alleged Wage and Hour Violations
Notably, the NJDOL began investigating the Newark facility of STG’s predecessor, XPO Logistics, back in 2019. Since that time, STG acquired XPO’s New Jersey intermodal operations. In doing so, it assumed responsibility for the relevant employment liabilities. According to state officials, the companies failed to pay certain wages and minimum-wage compensation, made unlawful deductions, failed to maintain accurate time and payroll records, and did not provide required earned sick leave. The deductions allegedly included fuel, tolls, parking, liability insurance, equipment fees, and truck maintenance expenses. In some pay periods, those deductions reportedly exceeded a driver’s gross compensation. Shockingly, that means it resulted in negative net pay.
New Jersey has a Specific Test for Worker Classification
A company cannot establish independent-contractor status merely by issuing a Form 1099, requiring a worker to create an LLC, or labeling the relationship an “independent contractor agreement.” Under New Jersey’s ABC test, a worker is presumed to be an employee unless the company proves all three statutory elements: the worker is free from control over the performance of the services; the services are outside the company’s usual course or places of business; and the worker is customarily engaged in an independently established business. Notably, in this case, NJDOL alleged that STG violated all three prongs of the state’s ABC test.
Call Our Monmouth County Wage and Hour Lawyer for a Confidential Consultation
At Poulos LoPiccolo PC, our New Jersey wage and hour attorney is a solutions-focused advocate for clients. If you were denied the full and fair wages that you earned, we can help. Please do not hesitate to contact us today to set up a completely confidential, no obligation consultation. With an office in Monmouth County, our firm handles wage and hour claims throughout all of New Jersey.
Source:
njoag.gov/ag-davenport-labor-department-reach-major-settlement-with-trucking-company-in-worker-misclassification-lawsuit/
