New Jersey hit Uber with a $650 million tax bill for misclassifying workers—is this the start of a war against gig-economy companies?
The monies owed are broken down by $523 million in overdue taxes and $119 million in interest and penalties since 2015. Uber officials, however, dispute these findings."We are challenging this preliminary but incorrect determination," Uber spokeswoman Alix Anfang told Bloomberg Law.
As of now, New Jersey’s demands are limited to unemployment and disability insurance, but it could require Uber to provide back pay to drivers for minimum wages and overtime under state law. The numbers could be staggering! If New Jersey alone seeks $650 million from Uber, consider the vast amount of money at stake when you add in all of the other states, along with the other companies built upon gig workers.
New Jersey Labor Commissioner Robert Asaro-Angelo said, “Cracking down on employee misclassification” is a ‘priority’ for Governor Phil Murphy’s administration.” Asaro-Angelo says in regards to Uber’s business model, “This defiance of the law puts honest business owners at an unfair disadvantage.”
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