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 allegations that the company misclassified more than one thousand delivery drivers as independent contractors.
The settlement is significant because it addresses worker misclassification, which can deprive employees of key benefits and protections under state law. The agreement requires PDX to reclassify its drivers as employees and comply fully with wage, benefit, and tax laws by January 1, 2027. This change will make drivers eligible for minimum wage, overtime pay, earned sick leave, unemployment benefits, family leave and temporary disability benefits, and workers’ compensation coverage.
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 agreement resolves four audits covering 2006 through 2019 that found PDX had violated unemployment compensation and temporary disability benefits laws by classifying drivers incorrectly. The original assessments totaled nearly $7.9 million in unpaid contributions and penalties. After years of litigation—including proceedings before administrative courts and federal court challenges—the parties reached an agreement in December 2025 contingent on an initial $5 million payment from PDX by March 2026; this condition has now been met.
Under the terms of the settlement, PDX will pay all required contributions going forward and remain subject to audits through January 1, 2029. An additional $2 million in suspended penalties will not be due if compliance is maintained throughout this 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 across 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 for state agencies according to the official website, and functions as a central agency focused on justice and consumer protection across New Jersey according to the official website.
The broader impact of this settlement may extend beyond just one company or industry sector by reinforcing fair labor practices throughout last-mile delivery services in New Jersey.
