From JDSupra, Richard Reibstein discusses the settlement of a lawsuit filed in 2015 against National Freight, Inc. and NFI Interactive Logistics, Inc. alleging, among other things, that drivers were misclassified as independent contractors. Richard writes:
EAST COAST LOGISTICS COMPANY SETTLES 10-YEAR IC MISCLASSIFICATION CLASS ACTION FOR $5.75 MILLION. Two logistics/transportation companies, National Freight, Inc. and NFI Interactive Logistics, Inc., have entered into a settlement agreement with drivers in an IC misclassification lawsuit filed in 2015 under the New Jersey Wage Payment Law. The settlement, which is subject to court approval, follows 10 years of litigation, including a motion for class certification, summary judgment motions, and five mediations. See our prior blog posts of July 11, 2018, August 20, 2020, and July 5, 2022, for a detailed procedural history of this case. The plaintiffs, owner-operator truck drivers from Pennsylvania and Rhode Island who made deliveries to stores throughout many East Coast states on behalf of NFI, claimed that the company violated the New Jersey Wage Payment Law by making deductions from its delivery drivers’ compensation for items such as fuel, occupational accident insurance, physical damage insurance, equipment, and fines. About $3.75 million of the $5.75 million proposed settlement amount will be paid to the participating class with each of the 119 class members receiving an average of $31,000 to $50,000 depending on their length of service. Approximately $2 million is earmarked for attorneys’ fees and litigation and administrative costs. Portillo v. National Freight Inc., No. 1:15-cv-07908 (D.N.J. Aug. 15, 2025).