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Redlined Independent Contractor Agreement

Document B3 | Comments and Proposed Revisions from Gig Workers Alliance of New Jersey

From: Terrence J. McAllister, Esq.
Firm: McAllister & Vega, LLP — Workers' Rights Practice
Representing: Gig Workers Alliance of New Jersey (GWANJ)
Date: February 18, 2026

To: Rachel Dominguez-Park, Esq.
Firm: Dominguez-Park McCarthy LLP
Re: NovaStream Logistics — Proposed Independent Contractor Agreement


Dear Ms. Dominguez-Park:

We represent the Gig Workers Alliance of New Jersey (GWANJ), a worker advocacy organization that includes drivers who currently provide services through the NovaStream platform. Several GWANJ members have shared NovaStream's proposed Independent Contractor Agreement with our office and asked us to review it.

While GWANJ is not a union and does not engage in collective bargaining, our members have authorized us to communicate their concerns and propose modifications that would make the Agreement fairer to drivers while preserving the flexibility that many of them value.

We have reviewed the Agreement and provide our comments and proposed revisions below. Additions are shown in green with underline, and deletions are shown in red with strikethrough.

We look forward to discussing these proposals at your convenience.

Respectfully,

Terrence J. McAllister


Proposed Redline

Article 1: Independent Contractor Relationship

1.1 Independent Contractor Status. (No change)

1.2 No Employment Relationship. (No change)

1.3 No Employee Benefits. As an independent contractor, Contractor shall not be entitled to any employee benefits, including but not limited to health insurance, retirement benefits, paid leave, workers' compensation coverage, or unemployment insurance benefits. Contractor is solely responsible for obtaining such coverage independently. from Company. However, nothing in this Agreement shall be construed to limit Contractor's rights under applicable law, including but not limited to any right to seek a determination of employee status for purposes of workers' compensation, unemployment insurance, or wage and hour protections under New Jersey law.

GWANJ Comment: The original language purports to disclaim statutory protections that cannot be waived by contract. Worker classification is a legal determination, not a contractual one. See Hargrove v. Sleepy's, LLC, 220 N.J. 289 (2015) (see also NJ ABC Test Reference).

1.4 Taxes. (No change)

Article 2: Services

2.1 Services. (No change)

2.2 Platform Access. (No change)

2.3 Delivery Standards. Contractor agrees to complete accepted deliveries in a professional and timely manner. Contractor shall:

  1. Handle packages with reasonable care to prevent damage;
  2. Deliver packages to the correct address and obtain delivery confirmation as specified in the App;
  3. Communicate promptly with Company or customers regarding any delivery issues; and
  4. Comply with all applicable traffic laws and regulations.
  5. Nothing in this Section shall require Contractor to deliver to any location Contractor reasonably believes poses a safety risk.
GWANJ Comment: Drivers report being penalized for refusing deliveries to locations they perceived as unsafe. Contractors must have the right to decline unsafe conditions without adverse consequences.

Article 3: Autonomy and Control

3.1 Method of Performance. (No change)

3.2 Work Schedule. (No change)

3.3 RouteGenius Recommendations. The App includes a routing optimization feature ("RouteGenius") that provides suggested delivery routes. Contractor may follow these suggestions or choose alternative routes in Contractor's discretion. Contractor acknowledges that delivery efficiency may affect Contractor's earnings and customer ratings, but Company does not mandate the use of RouteGenius.

Company shall not penalize Contractor, directly or indirectly, for choosing not to follow RouteGenius suggestions. Specifically, Contractor's choice to use alternative routes shall not negatively affect Contractor's ratings, priority access to Blocks, or any other aspect of Contractor's relationship with Company.

GWANJ Comment: The original language acknowledges that efficiency "may affect" ratings while claiming RouteGenius is not mandatory. This is doublespeak. If deviation from the algorithm results in lower ratings or reduced Block access, then compliance is effectively mandatory. True autonomy requires eliminating algorithmic penalties for route choices.

3.4 No Exclusivity. (No change)

3.5 Contemporaneous Competing Services. Contractor agrees that while actively performing a Block for Company (i.e., from the time Contractor checks in for a Block until all deliveries in that Block are completed or the Block is cancelled), Contractor shall not simultaneously perform delivery services for a competing platform. This restriction applies only during active Blocks and does not restrict Contractor's activities at any other time.

[DELETED]

GWANJ Comment: This provision is inconsistent with independent contractor status. A true independent contractor can organize their work as they see fit. If NovaStream is paying per delivery, it should not matter whether a driver makes a DoorDash delivery between NovaStream stops, as long as NovaStream deliveries are completed within the specified windows. This restriction suggests employment-level control over how Contractors spend their time.

Article 4: Independent Business Requirements

4.1 Independent Business. Contractor represents and warrants that Contractor operates an independent delivery business and is engaged in the trade or business of providing delivery services. Contractor either currently provides, or is actively available to provide, delivery services to clients other than Company.

Contractor represents that Contractor intends to provide delivery services on an independent basis. Company acknowledges that many Contractors may not have an established delivery business prior to engaging with the platform, and the absence of a pre-existing business shall not disqualify any individual from contractor status or serve as a basis for adverse action.

GWANJ Comment: The original language requires drivers to represent they already operate independent businesses — a representation many drivers cannot truthfully make. Requiring false representations benefits no one. The reality is that many drivers enter the gig economy without pre-existing businesses, and NJ's ABC Test evaluates the actual relationship, not pre-engagement business history.

4.2 Vehicle. (No change to substantive requirements, but add:)

Company shall provide Contractor with at least thirty (30) days' notice before implementing any changes to vehicle requirements that would require Contractor to obtain a different vehicle.

4.3 Equipment and Expenses. Contractor shall provide, at Contractor's sole expense, all equipment and supplies necessary to perform Services, including but not limited to a smartphone capable of running the App, any delivery equipment (hand trucks, package bags, etc.), and GPS or navigation tools. Contractor is solely responsible for all expenses incurred in providing Services, including vehicle maintenance, fuel, insurance, tolls, parking, and communication expenses.

Contractor is responsible for vehicle maintenance, fuel, insurance, and communication expenses. Company shall reimburse Contractor for tolls and parking expenses necessarily incurred in completing deliveries, upon submission of receipts through the App.

GWANJ Comment: Toll and parking costs are direct, verifiable expenses incurred solely because of delivery assignments. Requiring drivers to absorb these costs effectively reduces their per-delivery compensation below advertised rates.

4.4 Right to Substitute. Contractor may designate another individual to perform deliveries on Contractor's behalf, subject to the following conditions:

  1. The substitute must complete Company's standard onboarding process, including a background check;
  2. The substitute must agree to be bound by the confidentiality and conduct provisions of this Agreement;
  3. Contractor must provide Company with reasonable advance notice of the substitution; and
  4. Contractor remains responsible for the quality and timeliness of all Services, whether performed by Contractor personally or by a substitute.
  5. Company shall approve any substitute who satisfies conditions (a) through (c) within five (5) business days of a complete substitution request. Company shall not unreasonably withhold, condition, or delay approval of a qualified substitute. If Company fails to respond to a substitution request within five (5) business days, the request shall be deemed approved.
GWANJ Comment: The draft Agreement grants a right to substitute but establishes no process for Company approval. Our members report that substitution requests are routinely ignored or denied without explanation. A right without a mechanism is illusory. See Hargrove, 220 N.J. at 313 (examining whether rights exist "in fact" as well as "under the contract") (see also NJ ABC Test Reference).

Article 5: Compensation

5.1 Fees. Company shall pay Contractor for each completed delivery at the rates specified in the App at the time Contractor accepts each Block. Delivery fees vary based on factors including package size, delivery distance, time of day, and demand levels.

Delivery fees shall be clearly disclosed to Contractor before Contractor accepts each Block, including the number of deliveries, estimated total mileage, estimated time, and total compensation for the Block. Company shall not modify the compensation for an accepted Block after Contractor begins the Block, except to increase compensation.

GWANJ Comment: Drivers report accepting Blocks based on stated compensation, only to find that actual conditions (more packages than disclosed, longer distances, etc.) result in lower effective hourly earnings than expected. Transparency before acceptance is essential.

5.2 Incentives. (No change)

5.3 Payment. Company shall pay Contractor weekly via direct deposit for all deliveries completed during the prior week. Payment shall include base delivery fees plus any applicable incentives, less any deductions authorized by Contractor.

Payment shall include base delivery fees, reimbursable expenses, and any applicable incentives. Company shall not make any deductions from Contractor payments except (a) deductions required by law, or (b) deductions for specific, documented overpayments, provided Company gives Contractor at least fourteen (14) days' notice and an opportunity to dispute before deducting.

GWANJ Comment: The phrase "deductions authorized by Contractor" is vague and could be used to justify unilateral deductions. NJ wage payment law requires clear authorization for deductions. See N.J.S.A. 34:11-4.4.

5.4 Delivery Confirmation. Payment for a delivery is contingent upon successful delivery confirmation through the App. If a delivery cannot be completed (e.g., customer not available, incorrect address), Contractor shall follow the procedures in the App, and Company shall determine in good faith whether partial payment is warranted.

Contractor shall receive full payment for any delivery that cannot be completed due to circumstances beyond Contractor's control, including but not limited to: incorrect address provided by customer, customer unavailable after reasonable delivery attempts, or unsafe delivery conditions. Contractor shall receive partial payment (not less than 50% of the delivery fee) for any delivery returned to the facility due to such circumstances.

GWANJ Comment: The current language leaves compensation for failed deliveries entirely to Company discretion. Drivers should not bear the financial risk of retailer or customer errors.

5.5 Ratings. (See our comment on 7.1 regarding ratings-based deactivation)

Article 6: Contractor Requirements

6.1 Background Check. (No change)

6.2 Onboarding. Prior to performing any Services, Contractor must complete Company's onboarding process, which includes reviewing Company's service standards, customer service expectations, and proper package handling procedures. This onboarding is informational and does not constitute job training or evidence of an employment relationship.

[DELETED — see comment]

GWANJ Comment: Legal conclusions about whether training constitutes "job training" or "evidence of an employment relationship" are for courts and agencies to determine, not for contractual stipulation. If the training walks like a duck and quacks like a duck, calling it something else doesn't make it a goose.

6.3 Insurance. (No change)

6.4 Professional Conduct. Contractor shall conduct all interactions with customers in a professional and courteous manner. Contractor shall not engage in conduct that reflects poorly on Company's reputation or that violates applicable law.

Contractor shall comply with applicable law in performing Services. Company acknowledges that Contractor is not Company's representative and that Company shall not impose appearance, dress, or behavioral standards beyond legal compliance.

GWANJ Comment: "Conduct that reflects poorly on Company's reputation" is standardless and invites arbitrary enforcement. Independent contractors are not brand ambassadors.

Article 7: Performance Standards and Deactivation

7.1 Ratings Threshold. Contractor must maintain a minimum aggregate customer rating of 4.5 stars (out of 5.0) calculated on a rolling 60-day basis. If Contractor's rating falls below this threshold, Company may, in its discretion:

(a) Provide Contractor with notice and an opportunity to improve;

(b) Temporarily suspend Contractor's access to the platform; or

(c) Terminate this Agreement pursuant to Section 8.2.

Contractor's customer ratings shall be provided to Contractor for informational purposes. Company shall not deactivate, suspend, or take adverse action against Contractor based solely on customer ratings, because:

(a) Customer ratings reflect factors outside Contractor's control (traffic, weather, retailer packaging, address accuracy);

(b) Ratings systems are susceptible to bias and arbitrary customer behavior; and

(c) Ratings-based discipline is characteristic of an employment relationship.

Company may address specific, documented customer complaints through the process in Section 7.3.

GWANJ Comment: The 4.5-star threshold is punitively high. Academic research demonstrates that customer ratings are influenced by race, gender, and factors beyond worker control. Using ratings as a deactivation trigger gives Company effective termination-at-will authority while maintaining the fiction that it doesn't supervise workers. Either Company supervises performance (employment) or it doesn't (independent contracting). It cannot have both.

7.2 Completion Rate. If Contractor accepts a Block, Contractor is expected to complete all deliveries within that Block. Contractor may cancel an accepted Block prior to check-in without penalty. However, if Contractor cancels more than three (3) Blocks after check-in within any 30-day period, Company may temporarily reduce Contractor's priority for viewing and accepting future Blocks.

Contractor may cancel an accepted Block at any time for any reason. Company shall not penalize Contractor for Block cancellations, as the right to decline or cancel work is fundamental to independent contractor status. Company may establish reasonable notice preferences and may offer incentives (but not penalties) to encourage advance notice of cancellations.

GWANJ Comment: Penalizing cancellations is employer behavior. If NovaStream wants guaranteed labor availability, it should hire employees.

7.3 Customer Complaints. Company shall investigate customer complaints in good faith. Contractor shall have an opportunity to respond to any complaint before Company takes adverse action, except in cases involving allegations of theft, violence, harassment, or other serious misconduct.

Company shall provide Contractor with written notice of any complaint, including the substance of the allegation, before taking any adverse action. Contractor shall have at least five (5) business days to respond. Even in cases involving serious allegations, Company shall not take permanent adverse action until Contractor has had an opportunity to respond, although Company may temporarily suspend Contractor's access pending investigation.

GWANJ Comment: Due process applies to serious allegations most of all. The original carve-out allows deactivation based on unsubstantiated claims.

7.4 Deactivation. Company may immediately deactivate Contractor's access to the platform upon:

(a) Contractor's violation of any material term of this Agreement;

(b) Contractor's failure to maintain the minimum ratings threshold after notice and opportunity to cure;

(c) Allegations of theft, violence, harassment, or other serious misconduct, pending investigation;

(d) Contractor's failure to maintain required insurance or a valid driver's license; or

(e) Contractor's engagement in conduct that creates a safety risk or material reputational harm to Company.

Company may deactivate Contractor's access to the platform only for:

(a) Documented violation of law in the course of performing Services;

(b) Documented theft, violence, or harassment after investigation and opportunity to respond;

(c) Failure to maintain required insurance or valid driver's license after notice and 14-day cure period; or

(d) Mutual agreement of the parties.

Before any deactivation, Company shall provide Contractor with written notice, the factual basis for deactivation, and an opportunity to respond. Contractor shall have the right to appeal any deactivation to a neutral third party.

GWANJ Comment: The original provision permits deactivation for essentially any reason, making the "independent contractor" label meaningless. If Company can fire Contractors at will based on vague standards like "reputational harm," that's employment.

Article 8: Term and Termination

(No changes proposed, but see comments on Article 7)

Article 9: Confidentiality

(No changes proposed)

Article 10: Intellectual Property

10.2 Feedback. If Contractor provides any suggestions, feedback, or ideas regarding the App or Company's services, Company shall own all rights to such feedback and may use it without compensation to Contractor.

[DELETED]

GWANJ Comment: This is an overreaching IP grab. If Company wants driver ideas, it can compensate for them.

(Remaining provisions — no changes)

Article 11: Indemnification

11.1 Contractor Indemnification. Contractor shall indemnify, defend, and hold harmless Company, its officers, directors, employees, and agents from and against any claims, damages, losses, and expenses (including reasonable attorneys' fees) arising from:

(a) Contractor's performance of Services, including any vehicle accidents, property damage, or personal injury gross negligence or willful misconduct in performing Services;

(b) Contractor's breach of this Agreement material breach of this Agreement;

(c) Contractor's violation of any applicable law; or

(d) Any claim that Contractor is an employee of Company for tax, benefits, or other purposes.

GWANJ Comment: The original indemnification is breathtakingly broad. It requires drivers to indemnify the Company for ordinary negligence, any claimed breach, and — remarkably — for any claim that the driver is an employee. This last provision attempts to shift the cost of Company's own classification decisions onto workers. If workers are ultimately found to be employees, it is because Company chose to misclassify them. Company should not profit from its own legal exposure by forcing workers to pay its defense costs.

11.2 Limitation. (No change)

11.3 Mutual Indemnification. Company shall indemnify, defend, and hold harmless Contractor from and against any claims, damages, losses, and expenses (including reasonable attorneys' fees) arising from Company's gross negligence, willful misconduct, or violation of applicable law.

Article 12: Dispute Resolution

12.1 Arbitration. Any dispute, claim, or controversy arising out of or relating to this Agreement shall be resolved by binding arbitration administered by the American Arbitration Association in accordance with its Commercial Arbitration Rules. The arbitration shall be conducted in Newark, New Jersey.

Any dispute arising out of or relating to this Agreement may be resolved, at Contractor's sole election, by either:

(a) Binding arbitration administered by the American Arbitration Association in accordance with its Employment Arbitration Rules (not Commercial Rules), with Company paying all arbitration fees and costs beyond what Contractor would pay to file a court action; or

(b) Litigation in a court of competent jurisdiction in New Jersey.

The choice of forum shall be Contractor's alone. Company may not compel arbitration if Contractor prefers court adjudication.

GWANJ Comment: Mandatory arbitration with the Commercial Rules and a class waiver is the corporate trifecta for suppressing worker claims. If Company believes its classification is correct, it should be willing to defend it in court.

12.2 Class Action Waiver. Contractor agrees that any arbitration shall be conducted on an individual basis only, and Contractor waives any right to participate in a class, collective, or representative action.

[DELETED]

GWANJ Comment: Class and collective action waivers prevent workers from effectively vindicating small-value claims and shield companies from accountability for systemic violations. These waivers are substantively unconscionable and against public policy.

12.3 Exceptions. (No change)

Article 13: General Provisions

13.2 Amendments. Company may amend this Agreement upon thirty (30) days' notice to Contractor. Contractor's continued use of the platform after the effective date of any amendment constitutes acceptance. If Contractor does not agree to an amendment, Contractor may terminate this Agreement.

Any amendment to this Agreement shall require the mutual written consent of both parties. Company may propose amendments, but no amendment shall be effective unless Contractor affirmatively agrees in writing. Continued use of the platform after Company proposes an amendment shall not constitute acceptance.

GWANJ Comment: Unilateral amendment authority is incompatible with any meaningful notion of contract or independent contractor status. Employees are subject to unilateral policy changes by employers; independent contractors negotiate contract terms.

(Remaining provisions — no changes)


Conclusion

The proposed Agreement, while more thoughtfully drafted than many gig-economy contracts, still contains provisions that are inconsistent with genuine independent contractor status and that impose overreaching obligations on workers.

We welcome the opportunity to discuss these proposals. GWANJ members value the flexibility of platform work but also seek fair treatment and respect for their legal rights.

Please contact me at your convenience to schedule a call.


Terrence J. McAllister, Esq.
McAllister & Vega, LLP
180 Broad Street, Suite 1200
Newark, NJ 07102
(973) 555-0142
tmcallister@mcallistervega.com