Michael D. Martin, et. al. v. PSE&G Pension Plan et. al.
Statement of the Case:

Public Service Enterprise Group, Inc. and its family of companies (collectively, "PSE&G") (NYSE: PSEG) sponsors a number of qualified retirement plans and employee welfare benefit plans ("plans"). Due to the nature of the benefits offered and the status of the corporate entity sponsoring these arrangements, the plans are subject to the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et. seq. ("ERISA").

Since at least 1981, PSE&G has mischaracterized certain of its employees as "independent contractors" rather than employees. The effect of this mischaracterization has prevented these employees from accruing retirement credits and has prevented them from participating in PSE&G's employee welfare benefit plans including health insurance, severance pay, and long term disability. In determining whether an individual is an employee or independent contractor, the Internal Revenue Service ("IRS") has issued guidance in the form of a 20-factor test. 1987-1 C.B. 296. The IRS has indicated that said factors were derived from common law principles set out by courts. Plaintiffs assert that the IRS 20-factor test demonstrates their status as employees rather than independent contractors.

Plaintiffs were nominally employed through staffing agencies such as (but not limited to) Butler Technologies, L.J. Gonzer, and Aerotek. Even though these employees did such things as work on PSE&G projects, report to PSE&G managers, and were stationed at PSE&G facilities, the employees were advised that the staffing agencies -- not PSE&G -- was the employer. As such, these individuals had no right of access to PSE&G's pension, 401(k), health insurance and other benefits programs.

Plaintiffs initiated class-action litigation in the United States District Court, District of New Jersey (Newark Division) on December 13, 2005. The lawsuit is captioned Michael D. Martin, et. al. v. PSE&G, et. al. and bears docket number 05-5801. The Complaint is available online (click the 'Complaint' button in the menu on the left). The matter has been assigned to United States District Judge Dennis M. Cavanaugh and United States Magistrate Judge Mark Falk. The Plaintiffs are present and former employees of PSE&G who were mischaracterized as independent contractors. Plaintiffs seeks among other relief retroactive reinstatement in the plans, unpaid contributions to employee pension benefit accounts, and other relief relating to PSE&G's employee welfare benefit plans.

The Plaintiffs are represented by Smith Mullin, PC of Montclair, New Jersey and Niedweske Barber, PC of Morristown. More information regarding the lawsuit is available by clicking on the buttons in the menu to the left.