Uber Pays Unemployment Tax to NJ, But Maintains Classification Disagreement

According to reports, Uber Technologies Inc. has back-paid millions in New Jersey unemployment taxes, fees assessed due to the classification drivers as contractors; however, the ridesharing company shared its disagreement with the state that drivers were employees.

An Uber spokesperson told Reuters that “Drivers in New Jersey and nationally are independent contractors who work when and where they want… We look forward to working with policymakers to deliver benefits while preserving the flexibility drivers want,”

New Jersey’s Department of Labor and Workforce Development (DLWD) fined Uber and its subsidiary, Raiser, in 2019 over the unpaid unemployment taxes ranging from 2014 to 2018. However, Uber only paid $12.1 million while Raiser paid the remaining $88 million.

New Jersey said that it saw the settlement as an indication that these workers in the state were “presumed to be employees,” according to the New York Times. Uber, on the other hand, declared the payment was not part of the settlement.