STG Logistics Settles Misclassification Case in New Jersey
Drayage drivers who worked for STG Logistics in New Jersey may receive a portion of over $2.2 million from the company following a settlement in a misclassification case. The total cash payout is part of an overall agreement valued at more than $80.9 million, though most will be absorbed by STG’s recent chapter 11 bankruptcy proceedings that reduced its debt load by 90%. The remaining funds are to cover penalties and contributions to unemployment compensation and disability benefits in New Jersey. The settlement is significant as it precedes the implementation of New Jersey's ABC test on October 1, which will further define independent contractor status. This has raised concerns among carriers about potential legal exposure under stricter classification rules. The payout for drivers will be based on their earnings from January 2017 to present and distributed in a lump sum. The case began as an investigation in 2019 when the drayage operations were part of XPO Logistics, later sold to STG in 2022. The lawsuit was filed under New Jersey’s 2021 law targeting misclassified workers.
Tickers: $XPO
Topics: bankruptcy logistics settlement worker misclassification