New Jersey drayage drivers to receive $2.2 million from STG Logistics settlement, with $80.9 million total value largely absorbed by bankruptcy.
STG Logistics will pay $2.775 million to resolve a misclassification case involving New Jersey drayage drivers. The settlement allocates $2.2 million to drivers, while $555,000 covers penalties and state fund contributions.
The total settlement value reaches $80.9 million, but most of it will be absorbed by STG’s recent Chapter 11 bankruptcy proceedings, which reduced its debt by 90%. The agreement was filed in Essex County Superior Court and incorporated into the bankruptcy plan.
The case highlights growing scrutiny under New Jersey’s ABC test, set to codify on October 1, raising concerns among state carriers over compliance costs.