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ARTICLE · 05 AUGUST 2026

New Jersey Cracks Down On Worker Misclassification

Bond, Schoeneck & King PLLC
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New Jersey employers face significant financial exposure for misclassifying workers as independent contractors rather than employees. The New Jersey Department of Labor and Workforce Development (NJDOL) recently reached a settlement with STG Logistics Inc., STG Drayage LLC and other subsidiaries (STG), requiring STG to pay at least $2.775 million to resolve claims that it misclassified truck drivers as independent contractors in violation of the state’s wage and hour laws.

United StatesEmployment and HR
Jason Kaufman
Jason Kaufman
Mallory Campbell
Mallory Campbell

New Jersey employers face significant financial exposure for misclassifying workers as independent contractors rather than employees. The New Jersey Department of Labor and Workforce Development (NJDOL) recently reached a settlement with STG Logistics Inc., STG Drayage LLC and other subsidiaries (STG), requiring STG to pay at least $2.775 million to resolve claims that it misclassified truck drivers as independent contractors in violation of the state’s wage and hour laws. This settlement follows a lawsuit the NJDOL filed in New Jersey Superior Court, pursuant to a 2021 law that authorizes the state to file suit against employers for employee misclassification.

Under the settlement, $2.22 million will go directly to the misclassified truck drivers, while the remaining $555,000 will go to the state of New Jersey. In the event STG fails to comply with the terms of the settlement agreement, it will owe an additional $7.5 million in penalties to the state.

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