Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development Commissioner Robert Asaro-Angelo have announced a settlement with NJ Penn Logistics, LLC, a newspaper delivery firm. The settlement amounts to nearly $300,000 for misclassifying workers as independent contractors instead of employees.
NJDOL began its investigation into NJ Penn in 2021. The findings revealed that between 2018 and 2022, at least 105 workers were misclassified, violating New Jersey law. "Companies that willingly erode the employment relationship make all of society worse off, at the expense of workers’ wages, benefits, and well-being," said Attorney General Platkin. He emphasized the commitment to investigate companies violating labor laws.
Labor Commissioner Asaro-Angelo stated, "When businesses violate New Jersey’s labor law, they exploit workers and deny them of their right to fair pay and benefits." He highlighted the collaboration with the Office of Attorney General to protect workers' rights.
The settlement addresses allegations against NJ Penn for various violations including failing to pay due wages, withholding employee wages, failing to maintain records, illegally requesting criminal history from job applicants, not providing earned sick leave, and hindering the NJDOL investigation.
Of the total $296,188.52 settlement amount, $182,188.52 is allocated for eligible workers by February 1, 2025. An additional $114,000 will cover penalties and administrative costs for NJDOL.
NJ Penn has agreed to classify all current and future workers as employees under state labor laws such as the New Jersey Unemployment Compensation Law and Temporary Disability Benefits Law. Compliance with this agreement will be monitored for two years by the State. Non-compliance could result in an additional penalty up to $557,882.
The legal representation for NJDOL is provided by Deputy Attorney General Nadya A. Comas from the Office of the Attorney General’s Division of Law under Labor Enforcement Section Chief Eve E. Weissman and Assistant Attorney General Mayur P. Saxena.
