New Jersey wants Uber to pay all of the employment taxes that it avoids by calling drivers independent contractors instead of employees
against the company contesting their non-employee status. But New Jersey's multi-million dollar demand marks a major escalation in how governments are choosing to hold these companies accountable for their misdeeds. “It’s a stinging rebuke of the architects of the gig economy, and we hope it permeates across other sectors,” New York Taxi Workers Alliance Executive Directorsaid in a statement. “New Jersey is sending a message that the state’s labor laws aren’t dictated by corporations.
Of course, Uber, Lyft, and other companies aren't going to back down voluntarily, setting up a brewing battle between the gig economy and the governments determined to challenge the business model at its core. Uber—whose costs per driver could go up by more than 20% if they're classified as employees—has been moving aggressively to defend its bottom line amid the new governmental efforts to re-classify the company's employees.
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