Staffing Industry Analysts (SIA), the Global Advisor on Staffing and Workforce Solutions, reports on a million misclassification penalty:
Trucking company Eagle Intermodal Inc. agreed to pay $1.25 million to New Jersey in unemployment and disability contributions after misclassifying its workers as independent contractors for more than a decade, the New Jersey Department of Labor and Workforce Development reported earlier this month.
Eagle also agreed to come into compliance with the law.
“Unless employers can meet our strict criteria for exemption, commonly referred to as the ‘ABC test,’ workers in every industry are presumed employees — not independent contractors — under New Jersey law,” said Labor Commissioner Robert Asaro-Angelo.
The settlement comes in a 13-year-old case with the department; the company also agreed to drop its federal lawsuit challenging the department’s assessment.
Eagle’s dispute with the state began in 2006 when an audit found the company was misclassifying drivers as independent contractors, according to the department.