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Wednesday, November 6, 2024

New Jersey sues TransCare for driver misclassification under state labor laws

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Governor Phil Murphy | Official Website of Phil Murphy

Governor Phil Murphy | Official Website of Phil Murphy

Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development Commissioner Robert Asaro-Angelo have initiated legal action against TransCare, LLC, a medical transport company. The lawsuit, filed in the Superior Court, accuses the company and its owner, Dennis Young Jr., of misclassifying drivers as independent contractors rather than employees, which violates New Jersey labor laws.

The complaint claims that at least 52 drivers were misclassified while transporting patients to non-emergency medical appointments. This followed complaints from drivers who alleged they had not received full wages. An investigation by NJDOL determined these drivers were employees lacking their own independent businesses.

“Over the past year, and in conjunction with our colleagues at Labor and Workforce Development, we have been aggressively investigating this type of wage theft,” stated Attorney General Platkin. He warned companies against attempting to save money by denying employees their rightful wages and benefits.

Labor Commissioner Asaro-Angelo emphasized New Jersey's commitment to protecting workers from such practices. “The state is actively addressing employee misclassification in the transportation sector and in all industries in New Jersey," he said.

The lawsuit details how TransCare exerted control over its drivers by dictating work locations, schedules, pay rates, and requiring unpaid training sessions. Drivers used a third-party app for assignments and picked up company-branded vehicles from a designated lot where they also collected paychecks.

Legal remedies sought include ending TransCare’s misclassification practices and declaring the drivers as employees. The complaint also seeks penalties for failing to comply with various labor laws regarding minimum wage, overtime pay, record maintenance, sick leave provision, timely wage payment, and contributions to state funds like the Unemployment Compensation Fund.

Misclassification impacts workers' access to benefits such as minimum wage protections, overtime pay rights, unemployment compensation, temporary disability coverage, earned sick leave provisions, job-protected family leave entitlements, equal pay standards—and leaves them vulnerable to discrimination.

NJDOL encourages those with relevant information about TransCare or similar experiences to file complaints online or by mail.

Representing NJDOL are Deputy Attorneys General Marcus Mitchell and Egle Dykhne under supervision from Labor Enforcement Section Chief Eve E. Weissman among others within the Office of the Attorney General’s Division of Law.

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