Uber has paid the state of New Jersey a record $100 million in back taxes for depriving thousands of drivers of benefits by misclassifying them as independent contractors, the state’s labor department said.
NBC10 reached out to the labor department to ask why it publicized an original combined assessment of $523 million instead of $1 billion. The department did not respond.
Uber reiterated that it believes its drivers are independent contractors and that it disagrees with the state classifying them as employees. “While the original audit determined Uber owed more than $1 billion, we are glad to put this issue behind us, pay the state about $100 million as our drivers remain independent contractors who can work where and when they want,” Uber spokesman Josh Gold said.
The New Jersey branch of the American Federation of Labor and Congress of Industrial Organizations praised Gov. Phil Murphy’s administration for enforcing laws against misclassifying workers. “This illustrates that the gig is up, companies that intentionally misclassify employees in order to increase their profits at the expense of worker rights are now on notice – this unlawful practice is not tolerated here in New Jersey,” New Jersey State AFL-CIO President Charles Wowkanech wrote in a statement.
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