Uber To Pay $100 Million For Misclassifying Drivers As Contractors

Uber agreed to pay New Jersey over $100 million in back taxes because it considered its drivers as contractors, not employees, according to The New York Times. 

In November 2019, the New Jersey Department of Labor and Workforce Development accused Uber of owing $650million in back taxes.

New Jersey claimed that Uber misclassified its drivers as contractors for the past four years. This meant it could avoid paying taxes.

The main contention between Uber and regulators has been whether Uber considers its drivers' employees. 

Uber has always maintained that its drivers are contract workers and are not entitled to overtime or sick leave.

Although the settlement reached with New Jersey is significantly less than the original $650m bill, it's a concession by the company.

Robert Asaro Angelo, the commissioner of New Jersey's Department of Labor, said that this shows that workers in New Jersey are presumed, employees. 

He said that workers are entitled to their rights, regardless of the company's technology or business model.

In a statement to Insider, an Uber spokesperson stated that the company still views drivers as contractors.