Drayage drivers in New Jersey are set to cash in over $2.2 million from a landmark settlement with STG Logistics — but the real story is how this case reshaped labor law in the state. After a 2023 lawsuit under New Jersey’s strict ABC test, STG agreed to pay $2.775 million total: $2.2M to drivers and $555K to the state for penalties and worker benefits. Though the legal agreement valued at $80M, bankruptcy wiped most of it away. The suit, the first filed under NJ’s 2021 misclassification law, argued STG drivers were really employees — not contractors — because they had no control over routes, wore company branding, and were assigned jobs. Now, with NJ’s ABC test going into effect October 1, other carriers fear stricter rules ahead — especially around branding, which many see as federally mandated. This case could be a turning point for how states define worker status — and whether trucking companies can survive under such scrutiny.
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