Uber paid the US state of New Jersey $100 million in again taxes and fines for labeling practically 300,000 of its drivers as self-employed and withholding required advantages, officers mentioned Tuesday.
The ride-sharing big, nevertheless, insisted that its drivers had been certainly impartial contractors and mentioned it solely paid a fraction of the $1 billion initially demanded by the northeastern state.
The fee stems from a authorities audit of Uber’s operations in New Jersey between 2014 and 2018, which concluded that the corporate had improperly categorised its drivers as impartial employees.
Because of that, the New Jersey Department of Labour mentioned in a press release, Uber drivers misplaced the rights to a minimal wage, extra time pay, unemployment insurance coverage, earned sick go away, household go away and different advantages.
“We will not tolerate companies that misclassify their workers, thereby denying employees vital benefits and dodging their obligation to contribute to programs that benefit the workforce,” mentioned the state’s performing legal professional basic, Matt Platkin.
New Jersey Labor Commissioner Robert Asaro-Angelo mentioned job flexibility should not come on the expense of social advantages.
“Let’s be clear: there is no reason temporary, or on-demand workers who work flexible hours or even minutes at a time can’t be treated like other employees in New Jersey or any other state,” he mentioned in a press release.
Whether to categorise drivers for ride-sharing corporations as workers or impartial contractors has lengthy been a matter of debate amongst enterprise and authorities representatives, with no clear consensus rising up to now.
Uber defended its stance Tuesday.
“Drivers in New Jersey and nationally are independent contractors who work when and where they want – an overwhelming amount do this kind of work because they value flexibility,” the corporate mentioned in a press release to AFP. “We look forward to working with policymakers to deliver benefits while preserving the flexibility drivers want.”
It was unclear whether or not New Jersey authorities nonetheless thought of Uber to be in violation for its actions within the years after the audit.
The New Jersey Department of Labor didn’t instantly reply to an AFP request for remark.
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