• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

My TechDecisions

  • Best of Tech Decisions
  • Topics
    • Video
    • Audio
    • Mobility
    • Unified Communications
    • IT Infrastructure
    • Network Security
    • Physical Security
    • Facility
    • Compliance
  • RFP Resources
  • Resources
  • Podcasts
  • Project of the Week
  • About Us
    SEARCH
Compliance, News

New Jersey Classifies Uber Drivers as Employees with $650M Bill

Claiming that the ride-sharing company misclassified its drivers as independent contractors, New Jersey is asking Uber to pay big bills.

December 4, 2019 Jessica Messier Leave a Comment

New Jersey’s Department of Labor recently slapped Uber with a $650 million bill in unemployment and disability taxes. This is because the state is claiming that the ride-share company is “misclassifying drivers as independent contractors, Vice reports.

The size of this bill has been years in the making, Vice says: over the past four years, New Jersey has been working to have Uber pay $54 million in overdue taxes, and after an audit last year, $523 million in past-due taxes and around $119 million in interest and penalties on the unpaid amounts.

Uber could be in even bigger financial trouble with the passage of the Assembly Bill 5 in California, which will require app-based companies to treat contract workers as employees. These changes might cost Uber up to $500 million, Vice says, pointing to one Barclays analysis. Vice also says that there’s a chance other states will follow California’s lead for independent contractor classification, which “could cost Uber – a company that has never made a profit – billions of additional dollars in labor costs.”

Aside from pressuring the ride-share company to pay bills, hundreds of thousands of drivers working are taking Uber to court “for earnings deductions, misclassification, unpaid benefits, and more,” Vice says. Similar to the doors opened by California’s Assembly Bill 5, New Jersey’s bill may encourage other cities and states to make the case that drivers are misclassified, and encourage more drivers to seek benefits owed to them.

If Uber ends up having to pay these high bills, and needs to add more money for labor costs to its business model, it could be detrimental to the ride-sharing company’s success, Vice says. Uber has not yet made a profit, and is expected to be profitable by 2021; it currently stays afloat from investors. “The difference between Uber peak private valuation and today’s valuation is around $75 billion,” Vice says. “I don’t know about you, but if a company loses $75 billion in value, then maybe it shouldn’t exist.”

If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our digital newsletters!

Tagged With: Employee, Legal

Related Content:

  • Cloud, SASE, Aryaka How the Cloud is Redefining Media Production and…
  • Singlewire Software mass notification interview Singlewire Software on Mass Notification Solutions
  • URI catchbox 1 Catchbox Plus: The Mic Solution That Finally Gave…
  • Engaging virtual meeting with diverse participants discussing creative ideas in a bright office space during daylight hours Diversified Survey: Workplace AV Tech is Falling Short,…

Free downloadable guide you may like:

  • ChatGPT, generative AI, enterprise, workplaceBlueprint Series: ChatGPT and Generative AI in the Workplace

    This latest release of the TechDecisions Blueprint Series explores the new phenomenon of tools such as ChatGPT and how IT leaders should go about deploying generative AI in their organizations.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Latest Downloads

Practical Design Guide for Office Spaces
Practical Design Guide for Office Spaces

Recent Gartner research shows that workers prefer to return to the office for in-person meetings for relevant milestones, as well as for face-to-fa...

New Camera Can Transform Your Live Production Workflow
New Camera System Can Transform Your Live Production Workflow

Sony's HXC-FZ90 studio camera system combines flexibility and exceptional image quality with entry-level pricing.

Creating Great User Experience and Ultimate Flexibility with Clickshare

Working and collaborating in any office environment today should be meaningful, as workers today go to office for very specific reasons. When desig...

View All Downloads

Would you like your latest project featured on TechDecisions as Project of the Week?

Apply Today!

More from Our Sister Publications

Get the latest news about AV integrators and Security installers from our sister publications:

Commercial IntegratorSecurity Sales

AV-iQ

Footer

TechDecisions

  • Home
  • Welcome to TechDecisions
  • Contact Us
  • Comment Guidelines
  • RSS Feeds
  • Twitter
  • Facebook
  • Linkedin

Free Technology Guides

FREE Downloadable resources from TechDecisions provide timely insight into the issues that IT, A/V, and Security end-users, managers, and decision makers are facing in commercial, corporate, education, institutional, and other vertical markets

View all Guides
TD Project of the Week

Get your latest project featured on TechDecisions Project of the Week. Submit your work once and it will be eligible for all upcoming weeks.

Enter Today!
Emerald Logo
ABOUTCAREERSAUTHORIZED SERVICE PROVIDERSYour Privacy ChoicesTERMS OF USEPRIVACY POLICY

© 2025 Emerald X, LLC. All rights reserved.