A New Jersey federal district court judge has preliminarily
approved a $5.75 million settlement between National Freight, Inc.
(NFI) and a class of truck drivers working for the company.
However, the settlement goes well beyond a mere business dispute.
This case strikes at the heart of an industry that has long
perpetuated the ongoing, intentional misclassification of truck
drivers as “independent contractors” rather than
employees to avoid wage and hour laws.
In 2015, drivers working for NFI filed suit, alleging that the
company had misclassified them as independent contractors, thereby
making unlawful deductions from their pay in violation of state
law. By considering the truck drivers independent contractors, NFI
made them responsible for the costs of fuel, truck leases,
insurance premiums, equipment, permits, and license plate fees.
