New Jersey’s Department of Labor slapped Uber with an astronomical $650 million fine last month. Why?
It seems the state has decided that Uber drivers aren’t contract workers, but rather, employees. For those very drivers, it was shocking news.
So it goes, the Garden State taxed Uber, seeking to morph Uber drivers into employees. The government, too, is looking to backdate that change so that the company owes the government income taxes from its previous years of operation. But this forced reclassification threatens a thriving marketplace that has served both riders and drivers tremendously. It’s the same kind of initiative that’s been tried on the West Coast — this year, California passed a law that will reclassify as employees a huge number of contractors across the state.