Uber emphasized that despite the payment, it still views drivers as independent contractors and hopes to work with policymakers regarding this classification.
Uber and one of its subsidiaries paid $100 million to New Jersey after an audit by the state's Department of Labor and Workforce Development determined the ride-share company improperly classified hundreds of thousands of drivers as independent contractors.
The New Jersey Department of Labor on Tuesday announced that Uber and its subsidiary, Raiser LLC, had paid $78 million in past-due taxes plus interest of $22 million. The payment was the largest of its kind ever received in New Jersey, and covered nearly 300,000 drivers. The agency emphasized that misclassified workers are not at fault and can find more information about their rights at a designated website.
"Drivers in New Jersey and nationally are independent contractors who work when and where they want -- an overwhelming amount do this kind of work because they value flexibility," Josh Gold, an Uber spokesperson, told CNN Business in a statement Tuesday. "We look forward to working with policymakers to deliver benefits while preserving the flexibility drivers want."
The $100 million payment reflects just a fraction of what the state's audit initially requested, after the state's Department of Labor examined the companies' books over a five-year period from 2014 to 2018. The state labor agency said the revised figure of $100 million is based on additional data provided by Uber and Raiser following the initial audit.
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