The New Jersey Department of Labor (NJ DOL) billed Uber Technologies, Inc. and a subsidiary $650 million for past-due taxes, interest, and penalties due to an alleged misclassification of its drivers as independent contractors rather than employees. The NJ DOL claims this bill covers unemployment and disability insurance taxes owed for four years.
According to an Uber spokesperson’s comment to Bloomberg Law, the company plans to challenge the NJ DOL’s preliminary determination because it believes the drivers are properly classified as independent contractors. Following recent public statements by Governor Phil Murphy, the NJ DOL indicated that it plans to crack down on worker misclassification in the state. A finding that Uber workers are employees rather than independent contractors will have broader implications for companies outside of just receiving an unpaid tax bill from the state. For instance, companies also could be subject to state wage and hour laws requiring a minimum wage and time and one-half payments for overtime hours worked. Wage and hour laws also require employers to keep records of employee time. Additionally, businesses could be responsible for providing health and retirement benefits if the workers are classified as employees.
Read the full story at NJ DOL Bills Uber $650M for Misclassified Drivers | Ballard Spahr LLP – JDSupra