NEW JERSEY (PIX11) — Uber has forked over $100 million dollars for skirting New Jersey unemployment laws when it declared nearly 300,000 drivers as independent contractors, officials said.
The rideshare company’s record payout to the New Jersey Department of Labor and Workforce was made after officials audited Uber and its subsidiary, Raiser LLC, according to the NJDOL.
The five-year audit found the company had wrongfully declared 297,866 drivers as independent workers, denying them basic compensation rights, like unemployment benefits, temporary disability, and family leave insurance, the agency said.
The $100 million fine will be returned to the funds used to pay worker benefits in the state.
“These companies often repeat the false premise that being an employee stifles flexibility, which is just not true,” Labor Commissioner Robert Asaro-Angelo said. “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.”