By: Richard L. Smith
New Jersey authorities have secured a nearly $300,000 settlement with NJ Penn Logistics, LLC, a newspaper distribution company accused of misclassifying workers as independent contractors instead of employees.
The settlement, announced by Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo, follows an investigation that revealed violations of state labor laws.
According to information released by the New Jersey Attorney General’s Office, the investigation found that between 2018 and 2022, NJ Penn misclassified at least 105 workers, including delivery and warehouse staff.
This misclassification deprived employees of wages, benefits, and other legal protections.
“Companies that undermine employment relationships harm workers and society at large,” said Attorney General Platkin.
“We will continue to hold businesses accountable for violating labor laws.” Commissioner Asaro-Angelo echoed these sentiments, emphasizing the importance of ensuring fair pay and benefits for New Jersey workers.
The settlement addresses multiple violations, including failure to pay wages, withholding employee pay, denying sick leave, and obstructing the NJDOL investigation.
Of the total $296,188.52 settlement, $182,188.52 will go to eligible workers by February 1, 2025. The remaining $114,000 will cover penalties and administrative fees.
NJ Penn Logistics must reclassify all current and future workers as employees under state labor laws as part of the agreement.
The company will also be subject to a two-year compliance monitoring period. Failure to meet the terms could result in additional penalties of up to $557,882.
According to the Attorney General's Office, this settlement underscores New Jersey's commitment to enforcing labor laws and protecting workers’ rights.
