STG Logistics drivers in NJ to receive $2.2M in priority cash payout over misclassification

Published Aug 3, 05:41 PM UTC

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.