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.
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STG Logistics to Pay $2.2 Million to Drayage Drivers in New Jersey Misclassification Settlement
STG Logistics has settled a worker misclassification case with New Jersey, agreeing to pay $2.2 million to drayage drivers who were misclassified as independent contractors. The total settlement is valued at $80.9 million, but most of that amount will be discharged through STG's recently concluded Chapter 11 bankruptcy, which eliminated 90% of the company's debt. The cash payout to drivers is considered a priority claim under bankruptcy law, ensuring they are compensated before other creditors. An additional $555,000 will go to New Jersey for penalties and unemployment compensation funds. The case, first filed in 2023 under a 2021 state law, stems from an investigation that began in 2019 when the drayage operations were still part of XPO Logistics. The settlement comes just before New Jersey codifies the ABC test on October 1, raising concerns among carriers.
STG drayage drivers to get cash in NJ misclassification case
STG Logistics has settled a worker misclassification lawsuit with New Jersey, agreeing to pay $2.2 million to drayage drivers who were misclassified as independent contractors. The total settlement is valued at over $80.9 million, but most of that amount will be discharged in STG's recently concluded Chapter 11 bankruptcy, which eliminated 90% of the company's debt. The cash payout to drivers is considered a priority claim, ensuring they are compensated before other creditors. An additional $555,000 will go to New Jersey for penalties and unemployment/disability funds. The case, first filed in 2023 under a 2021 state law targeting misclassification, stems from an investigation that began in 2019 when the drayage operations were part of XPO Logistics. The settlement comes just before New Jersey codifies the ABC test on October 1, raising concerns among carriers.
STG drayage drivers to get cash in NJ misclassification case
Drayage drivers who worked for STG Logistics in New Jersey are eligible for a share of a $2.2 million payout following a settlement over worker misclassification. The total settlement is valued at over $80.9 million, but most of that will be discharged in STG's Chapter 11 bankruptcy, which wiped out 90% of its debt. The $2.2 million for drivers is considered a priority claim. The case, first filed in 2023 under a 2021 state law, originated from a 2019 investigation when the drayage operations were part of XPO Logistics. New Jersey's ABC test, which presumes workers are employees unless proven otherwise, was central to the state's case. The settlement comes just before New Jersey codifies the ABC test on October 1.
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STG drayage drivers to receive cash in New Jersey misclassification settlement
Drayage drivers who worked for STG Logistics in New Jersey are eligible for a portion of a $2.2 million payout following a settlement over worker misclassification. The total settlement is valued at $80.9 million, but most of that amount will be discharged in STG's Chapter 11 bankruptcy, which wiped out 90% of the company's debt. The $2.2 million for drivers is considered a priority claim, ensuring they are paid before other creditors. An additional $555,000 will go to New Jersey for penalties and unemployment/disability funds. The case, first filed in 2023 under a 2021 state law, originated from a 2019 investigation when the drayage operations were part of XPO Logistics. The settlement comes just before New Jersey codifies the ABC test on October 1, raising concerns among carriers.
STG drayage drivers to get cash in NJ misclassification case
STG Logistics drivers in New Jersey are eligible for a $2.2 million payout following a settlement over worker misclassification. The total settlement is valued at over $80.9 million, but most will be absorbed by STG's recent Chapter 11 bankruptcy, which wiped out 90% of its debt. The cash payout to drivers is considered a priority claim, ensuring they are compensated before other creditors. An additional $555,000 will go to New Jersey for penalties and unemployment funds. The case, first filed in 2023 under a 2021 state law, stems from an investigation that began in 2019 when the drayage operations were part of XPO Logistics. The settlement comes just before New Jersey codifies the ABC test on October 1, raising concerns among carriers. Eligible drivers will receive lump-sum payments based on earnings from January 1, 2017, onward.