The New Jersey Department of Labor and Workforce Development, together with the Office of the Attorney General, announced on Mar. 12 a $7 million settlement with PDX North, Inc., resolving longstanding worker misclassification violations involving more than one thousand delivery drivers.
The agreement is significant because it requires PDX to reclassify its delivery drivers as employees rather than independent contractors, making them eligible for state-mandated benefits and protections. The move aims to ensure fair treatment for workers and create a level playing field for businesses that comply with labor laws.
Attorney General Jennifer Davenport said, “Misclassifying workers raises costs for workers, taxpayers, and law-abiding businesses, which many of them can hardly afford. Combating worker misclassification is a critical part of our efforts to make our state more affordable for all New Jerseyans. Through close collaboration with the New Jersey Department of Labor and Workforce Development, we secured a resolution that holds PDX accountable for its misconduct. PDX has now reclassified its drivers as employees to comply with our labor laws, ensuring that workers receive the protections they deserve.”
Acting Labor Commissioner Kevin D. Jarvis said, “This settlement reflects New Jersey’s strong commitment to protecting workers and ensuring employers meet their legal obligations. Worker misclassification denies employees critical benefits and protections and undermines fair competition for businesses who follow the law. By restructuring how it operates, PDX is demonstrating a true commitment to following the Garden State’s worker protection laws.”
The case resolves four audits covering 2006 through 2019 in which PDX was found to have improperly classified drivers in violation of unemployment compensation and disability benefits laws. The original assessments totaled nearly $7.9 million in unpaid contributions, interest, and penalties. After litigation in both administrative proceedings and federal court—including unsuccessful appeals by PDX—the company agreed to pay an initial $5 million lump sum by March 2026 and up to an additional $2 million if it fails future compliance terms through January 2029.
PDX will now pay into state unemployment compensation and disability funds beginning this year; by January 1, 2027 all drivers must be properly classified under wage, benefit, and tax laws enforced by NJDOL. The company remains subject to ongoing audits during the agreement period.
According to the official website, the New Jersey Attorney General Matthew Platkin aims to protect residents’ lives and property while upholding legal standards statewide according to the official website. The office extends its authority throughout all counties in New Jersey according to the official website and influences public safety through enforcement oversight according to the official website. It also holds statutory authority over law enforcement matters according to the official website, provides services such as legal representation and consumer protection initiatives according to the official website, and functions as a key agency focused on justice across New Jersey according to the official website.
The broader impact of this settlement may influence other companies operating in last-mile delivery sectors within New Jersey by reinforcing compliance expectations regarding worker classification.
