Uber considers its drivers to be independent contractors. That means they aren’t responsible for things like taxes and unemployment fees for their drivers. California disagreed so strongly that after the National Labor Relations Board ruled that drivers were contractors, they passed a law specifically targeting Uber and similar companies. The goal is to force numerous companies to hire their gig workers as employees.
While the world focused on California’s treatment of Uber drivers as employees, New Jersey quietly audited and decided that yes, Uber drivers (despite the NLRB ruling) were employees. Uber owed back taxes and fines, totaling $649 million.
Uber spokeswoman, Alix Anfang told The New York Times, “We are challenging this preliminary but incorrect determination because drivers are independent contractors in New Jersey and elsewhere.”
New Jersey, of course, disagrees, and this will land in court.
To keep reading, click here: New Jersey to Uber: $649 Million, Please