New Jersey has demanded that Uber pay $649 million for years of unpaid employment taxes for its drivers, arguing that the ride-hailing company has misclassified the workers as independent contractors and not as employees.
The case represents a major escalation in how states nationwide view the employment practices at the core of many app-based companies, and the first time that a local government has sought back payroll taxes from Uber, which has hundreds of thousands of drivers in the United States.
In California, a new law could require that workers be designated as employees, allowing them to gain access to basic protections like minimum wage and unemployment insurance. Similar legislation has taken root in New York, Oregon and Washington State. In New York City, drivers for ride-hailing appsnow receive a minimum wage, though they are not classified as employees. Last week, the New Jersey Senate took up legislation that could restrict when some businesses are permitted to classify workers as independent contractors. As employees, they would be entitled to basic protections and benefits, such as overtime pay, health care and unemployment insurance.
Article submitted by, Great Gazoo.