Uber released a statement on Monday stating that they have paid $100 million in back unemployment taxes to NJ after the state decided drivers are employees, not independent contractors.
New Jersey's Department of Labor and Workforce Development had fined Uber and Raiser in 2019 over unpaid unemployment taxes for the years 2014-2018 due to driver misclassification, which the company disputed.
Uber and Raiser were fined by NJ in 2019 for unpaid unemployment taxes for 2014 through 2018. Pictured: Uber pick-up sign at Los Angeles International Airport in Los Angeles, California, on July 10, 2022. The state's labor department has now said its initial audit was an estimate made without Uber's cooperation, according to theA subsequent audit, relying on worker payroll data supplied by Uber, assessed that Uber and its unit owed a combined $100 million in back taxes, penalties and interest, the report added.UBER DRIVER TURNS IN JAN.
New Jersey said that it saw the settlement as an indication that these workers in the state were "presumed to be employees," according to the NYT. Uber, however, has said that the payment was not part of "a settlement." "Our efforts to combat worker misclassification in New Jersey are continuing to move forward," the report said, quoting Robert Asaro-Angelo, the labor department's commissioner, as saying.