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STG Logistics to pay $2.8M in NJ driver misclassification case

Source: NJBiz · Jul 30, 2026, 2:29 PM

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STG Logistics to pay $2.8M in NJ driver misclassification case news image

STG Logistics has agreed to a settlement of at least $2.8 million to resolve claims that it misclassified hundreds of truck drivers as independent contractors rather than employees.

The case highlights ongoing litigation in New Jersey over worker classification practices in the logistics and transportation industry, where companies have faced significant penalties for improperly categorizing drivers to avoid providing employee benefits and protections.

This settlement underscores state and federal scrutiny of gig economy and transportation company employment practices.

Key points

  • STG Logistics will pay at least $2.8 million to settle misclassification claims
  • The case involved hundreds of truck drivers classified as contractors instead of employees
  • The settlement reflects New Jersey's enforcement of worker classification and employment law
  • Misclassification allows companies to avoid providing benefits, overtime, and workplace protections

FAQ

What is driver misclassification?
Driver misclassification occurs when trucking and logistics companies classify workers as independent contractors rather than employees to avoid providing wages, benefits, overtime pay, and workplace protections. This practice is illegal under New Jersey and federal labor law.
Why does this settlement matter for New Jersey workers?
The $2.8 million settlement demonstrates that New Jersey actively enforces worker protection laws and holds major logistics companies accountable for misclassifying drivers. It signals consequences for companies that attempt to evade employment obligations.
How many drivers were affected?
The settlement involved claims affecting hundreds of truck drivers who were improperly classified as independent contractors by STG Logistics.

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