STG Logistics settles driver misclassification case; drivers to share $2.2 mln

Published Aug 3, 05:41 PM UTC

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.