Uber has back-paid $100 million in unemployment taxes to New Jersey in a dispute over drivers being classified as contractors, but stated that it did not agree with the state’s view that its drivers were employees.
In a statement defending the company’s position, Uber also said it only paid a fraction of the original demand from the state, which it said was over $1 billion. The ride-hailing company made a payment of $12.1 million, while its subsidiary Raiser paid about $88 million.
“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,” an Uber spokesperson said.
New Jersey’s Department of Labor and Workforce Development had fined Uber and Raiser in 2019 over unpaid unemployment taxes for the years 2014-2018 due to driver misclassification, which the company disputed.
The state’s labor department has said its initial audit was an estimate compiled without cooperation from Uber, according to a New York Times report.
A subsequent audit carried out in coordination with the firm assessed that Uber and its unit owed a combined $100 million in back taxes, penalties and interest.