Lawsuit Alleges Company Misclassified 52 Employees as Independent Contractors

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TRENTON – Attorney General Matthew J. Platkin and New Jersey Department of Labor and Workforce Development (NJDOL) Commissioner Robert Asaro-Angelo announced today that they have filed a lawsuit against TransCare, LLC, a medical transport company, and its owner, Dennis Young Jr., for the illegal practice of misclassifying drivers as independent contractors instead of employees, and for related violations of New Jersey’s labor and employment laws.

The State’s complaint, filed in the Superior Court, alleges that the company misclassified at least 52 drivers, who transported patients to and from non-emergency medical appointments. After receiving complaints from individual drivers alleging that TransCare had not paid them their full wages, an NJDOL investigation revealed that those and other drivers were employees of TransCare who did not operate independent businesses of their own.

“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,” said Attorney General Platkin. “If companies think they will save money by cheating their employees of their rightful wages and benefits, they should think again, because they will still have to pay—and pay more than they would have originally—when we find them.”

“In New Jersey, we are proud to protect workers from this type of blatant misbehavior,” said Labor Commissioner Asaro-Angelo. “The state is actively addressing employee misclassification in the transportation sector and in all industries in New Jersey, and we expect companies to treat their employees in accordance with the law.”

According to the complaint, TransCare, which is based in Berlin, New Jersey, exercised considerable control over the drivers, including directing where, when, and how drivers obtained work and setting drivers’ work hours and rate of pay. Before working with TransCare, drivers had to undergo required training, some of which was unpaid. TransCare also required drivers use a third-party mobile application called ModivCare WellRyde to receive instructions and assignments.

In addition, drivers reported to a parking lot to pick up the company-branded vehicles and dropped off their vehicles and timesheets at the same location. Drivers also picked up their paychecks from the parking lot.

The lawsuit seeks an order ending TransCare’s misclassification practices and a ruling that declares the drivers were and are TransCare’s employees. The complaint also seeks penalties and damages for:

• failing to pay minimum wage and overtime in violation of the Wage and Hour Law (WHL);
• failing to maintain records in violation of the WHL;
• misclassifying workers in violation of the WHL, Wage Payment Law, and Wage Collection Law, as amended by P.L. 2019 c. 212, often referred to as the Wage Theft Act;
• failing to make available and pay earned sick leave, provide notice of earned sick leave, and maintain records of earned sick leave under the Earned Sick Leave Law;
• failing to timely pay full wages in violation of the Wage Payment Law; and
• failing to make required contributions to various state funds, most notably the Unemployment Compensation Fund.

The lawsuit also seeks attorneys’ fees, expenses, and costs.

Misclassification deprives workers of rights and benefits afforded to employees, including minimum wage, overtime, workers’ compensation, unemployment, temporary disability, earned sick leave, job-protected family leave, and equal pay, and leaves workers unprotected against discrimination. Visit the NJDOL for more information about the distinction between independent contractors and employees under New Jersey law, including questions and answers that help show the difference between the two. Workers can learn more about their rights and protections at myworkrights.nj.gov.

Misclassification also hurts many employers who abide by state labor and employment laws, by putting them at a competitive disadvantage against those who flout the law. Businesses can learn about legal requirements and services provided to them here.

If you, or someone you know, has worked for TransCare or has information that may be relevant to this case, you can file a complaint with NJDOL online or by mail. Information about how to file is available at https://www.nj.gov/labor/wageandhour/claims-appeals-investigations/file/.

NJDOL is represented in this matter by the Office of the Attorney General’s Division of Law, including Deputy Attorneys General Marcus Mitchell and Egle Dykhne, under the supervision of Labor Enforcement Section Chief Eve E. Weissman, Labor Enforcement Assistant Section Chief Daniel Resler, Assistant Attorney General Mayur P. Saxena, and Deputy Director Sara M. Gregory.

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