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STG Logistics Drayage Drivers to Receive $2.2M in Misclassification Settlement

Drayage drivers who worked for STG Logistics in New Jersey will share a $2.2 million payment following resolution of a driver misclassification dispute. The settlement is valued at over $80 million, with $555,000 allocated to New Jersey for penalties and contributions to unemployment and disability funds. Most of the settlement amount will be absorbed by STG's recently concluded Chapter 11 bankruptcy, which reduced company debt by 90 percent. However, driver payments are designated as priority claims under bankruptcy code, ensuring workers receive compensation before other creditors. Eligible drivers will be compensated based on earnings from January 1, 2017 forward. STG may be required to make an additional $2.5 million payment if it fails to meet specific settlement obligations. The agreement is incorporated into the company's bankruptcy plan.