STG Logistics settles $2.2M driver misclassification case in New Jersey
STG Logistics settled a worker misclassification lawsuit in New Jersey, paying $2.2 million to drayage drivers misclassified as independent contractors. The total settlement was $80.9 million, but most was discharged in STG’s Chapter 11 bankruptcy, which eliminated 90% of its debt. An additional $555,000 goes to New Jersey for penalties and unemployment funds. The case, filed under a 2021 state law, originated from a 2019 investigation when operations were under XPO Logistics. The settlement precedes New Jersey’s codification of the ABC test on October 1.