In context: Uber has been battling with state regulators for years over the standing of its workers. Uber desires to proceed classifying them as contractors, however many authorities really feel they need to be thought of full workers, and thus be granted all the advantages that include such a standing, together with paid time without work and sick go away.
For Uber, classifying its drivers as workers would most likely be fairly the nightmare situation. The added bills that might include giving its employees full advantages may not sink the corporate, however it might definitely take an enormous chunk out of its backside line.
As such, it is no shock to see Uber struggle towards potential rules to the bitter finish. Even in states the place new legal guidelines seemingly goal the corporate’s enterprise practices straight, Uber has tried to wriggle its manner out of the dilemma. For instance, California just lately voted in favor of guidelines that might pressure many contractors to be thought of workers (efficient January 2020). Uber stated it was exempt from these guidelines as a result of the act of driving for the corporate is in some way exterior the same old course of its enterprise.
Sadly, these types of arguments aren’t probably to assist Uber out a lot in New Jersey. The state has formally requested Uber for roughly $650 million in overdue unemployment and incapacity insurance coverage taxes as a result of it has been “misclassifying” its drivers as contractors.
That is fairly the sum, and as you’d count on, Uber plans to “problem” the state’s “preliminary however incorrect” dedication. We’ll let you understand how that goes.