New Jersey slaps Uber with $640 million in taxes and penalties, saying the ride-hailing company misclassified its drivers as independent contractors.
New Jersey is seeking more than $640 million from Uber in taxes and penalties, saying the ride-hailing company misclassified its drivers as independent contractors.
Worker advocates say that job misclassification hurts laborers and the states where they live, which miss out on tax revenues. The move was hailed as a victory by those pushing for better working conditions for Uber’s drivers. Many of Uber’s drivers work part time, but others put in long hours and rely on ride-hailing as their sole source of income.
New Jersey has among the strictest tests for determining whether a worker qualifies as an independent contractor. To be considered an independent contractor requires meeting all three criteria of a test set up under state law, including that the services performed fall outside the employer’s usual course of business.
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