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Eagle Systems challenging New Jersey's $2 million assessment over owner-operators


By Noddy A. Fernandez | Jul 20, 2018

Law money 06

TRENTON, N.J. (Legal Newsline) – A trucking company alleges the New Jersey Department of Labor imposed tax assessments on it that have no basis in law or fact.

Eagle Systems Inc., on behalf of itself and all others similarly situated, filed a complaint on July 8 in the U.S. District Court for the District of New Jersey against Robert Asaro-Angelo, in his official capacity as the commissioner of the Department of Labor and Workforce Development of the State of New Jersey, citing the New Jersey Administrative Procedure Act and Federal Aviation Administration Authorization Act.

According to the complaint, the plaintiff is seeking to stay Eagle Intermodel Inc. v. NJ Department of Labor, to void the allegedly unlawful assessments issued by the Department of Labor against the plaintiff, and to enjoin the department from assessing further unemployment taxes against it.

The suit states the Department of Labor assessed more than $2 million in alleged unemployment contributions, penalties and interest against the plaintiff and forced it to close its New Jersey operations. The plaintiff alleges a department investigator concluded its owner-operators were employees and not independent contractors.

The suit states in 2008 and 2009, the department changed its enforcement policy by holding that owner-operators are employees instead of independent contractors and allegedly did so without notice or opportunity to comment.

The plaintiffs request a trial by jury and seek preliminary and permanent injunction, abate contribution, interest and penalties, award of attorneys' fees, costs, and such other and further relief as the court may deems just and proper. It is represented by Salvador P. Simao of FordHarrison LLP in Berkeley Heights, New Jersey.

U.S. District Court for the District of New Jersey case number 3:18-cv-11445-MAS-DEA

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U.S. District Court for the District of New JerseyFordharrison Llp

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