A few weeks ago, we mentioned the rough quarter Uber had, losing more than a billion dollars. Now they're in trouble here in New Jersey: Uber Technologies Inc. owes the state about $650 million in unemployment and disability insurance taxes because it has been misclassifying drivers as independent contractors.
Uber and subsidiary Rasier LLC were assessed $523 million in past-due taxes over the last four years, the state Department of Labor and Workforce Development said in a pair of letters to the companies. There's another $119 million due in interest and penalties on the unpaid amounts.
The state’s decision is limited to unemployment and disability insurance, but it could also end up meaning that Uber is required to pay drivers minimum wages and overtime under state law. Uber’s costs per driver (as well as those of Lyft) could jump by more than 20 percent if they are forced to reclassify workers as employees.
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