NJ Newspaper Delivery Company Accused Of Labor Violations

NEW JERSEY — A newspaper and magazine delivery company that works with several large publications in New Jersey has been accused of breaking state labor laws by misclassifying its workers, prosecutors announced Tuesday.

NJ Penn Logistics LLC has agreed to a $296,188 settlement with the New Jersey Department of Labor and Workforce Development, state attorney general Matthew Platkin said.

The company disputes the allegations, prosecutors noted in the settlement.

NJ Penn, a wholesale distributor of newspapers and magazines, delivers more than 70 million periodicals a year to retail chain customers, independent newsstands and vendors, according to the company’s website. It has headquarters in Jersey City and Norristown, Pennsylvania.

According to the attorney general’s office, the New Jersey Department of Labor (NJDOL) began investigating NJ Penn in 2021. Investigators found that between 2018 and 2022, the company allegedly misclassified at least 105 newspaper delivery, warehouse and other workers as independent contractors instead of employees.

Prosecutors said this week’s settlement resolves allegations that NJ Penn violated multiple labor laws, including:

• Failing to pay wages due to employees
• Withholding or diverting employee wages
• Failing to maintain and provide records
• Illegally requesting job applicants’ criminal history
• Failing to provide employees earned sick leave
• Hindering the NJDOL in its investigation

Prosecutors said that $182,188 will be payable to eligible workers no later than Feb. 1, 2025.

The NJDOL will receive an additional $114,000 to satisfy alleged penalties, administrative fees and costs, prosecutors said.

In addition, NJ Penn has agreed to classify all current and future workers as employees under all applicable state labor and employment laws, including (but not limited to) the New Jersey Unemployment Compensation Law and the Temporary Disability Benefits Law, the attorney general’s office said.

The state will monitor compliance with the agreement for two years. Failing to comply with the terms of the agreement could result in an additional immediate penalty of up to $557,882, prosecutors said.

Patch reached out to NJ Penn via email seeking comment about the settlement. We will update this article with any reply we receive.

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