Uber fined 650 million

Recently, New Jersey fined Uber $649 million, requiring the company to pay overdue employment tax for online car Hailing drivers. New Jersey accused the car Hailing company of mistakenly treating drivers as independent contractors rather than regular employees.
Tencent technology news, represented by Uber, has been faced with a dispute that they regard employees as outsourcing workers rather than formal workers, which is considered to be labor exploitation and harm the interests of practitioners.
New Jersey has fined Uber $649 million, requiring the company to pay overdue employment taxes for online car Hailing drivers, according to foreign media. New Jersey accused the car Hailing company of mistakenly treating drivers as independent contractors rather than regular employees.
According to foreign media reports, in an audit, New Jersey found that from 2014 to 2018, Uber had $530 million in tax arrears in employee unemployment and disability insurance, and then the State Department of labor development this week proposed to Uber and its subsidiary raiser to make up the huge amount of money.
In addition to historical taxes, the state seeks an additional $119 million in interest.
The incident marks a major change in the state’s view of many application based casual economy companies, and is the first time that local governments in the United States have recovered employment taxes from Uber. Today, Uber has hundreds of thousands of drivers in the United States.
A spokesman for Uber said the company questioned the New Jersey findings. “We question this incorrect decision because in New Jersey and elsewhere, hire car drivers are independent contractors.” This is what Alex an Fang, Uber’s spokeswoman, said.
Across the U.S., states and cities are aggressively overhauling small economy companies that rely on cheap, independent labor, which could reshape their business models. Before that, the outside world raised questions and objections to the outsourcing employment mode of the part-time economy, and demanded to change it. However, the part-time economy companies won in some disputes.
In California, a new law will require outsourcers in part-time economic companies to be recognized as regular workers, thus providing them with basic protections such as minimum wage and unemployment insurance.
Similar legislation has emerged in New York, Oregon and Washington, driven by labor groups. In New York City, online car Hailing drivers have not been officially recognized as regular workers, but they can already receive the legal minimum wage.
Last week, the New Jersey Senate passed legislation that would restrict some businesses from treating employees as independent contractors. As regular workers, these employees are entitled to basic protection and benefits, such as overtime pay, health insurance and unemployment insurance.
According to industry agencies, if government regulators or courts require companies such as Uber and LYFT to treat employees as employees, their labor costs could rise by 20-30%.
“The New Jersey Department of labor development is cracking down on the misclassification of employees because it kills our workforce and causes huge economic losses,” the Department’s commissioner, Robert Asaro Angelo, said in a statement.
Some labor organizations in the United States praised the action taken by the New Jersey government.
“This is a sharp attack on the designers of the part-time economy. We hope it can penetrate into other industries.” Bhairavi Desai, executive director of the New York taxi drivers’ Union, said in a statement. “New Jersey is sending the message that the state’s labor laws are not set by private companies.”
According to reports, the New Jersey government conducted an audit of 1% of employers in the state in 2018, which found that more than 12000 employees were wrongly classified as independent contractors. According to the state government, companies understated wages and employment taxes by more than $462 million.
Previously, some Uber car Hailing drivers sued the company in New Jersey, claiming that they should be regular employees and have not been paid enough at present, and have not been able to reimburse their daily operating expenses.
“It’s a double whammy,” said Roosevelt Smith, a New Jersey lawyer who filed a class action lawsuit on behalf of several Internet car hailers.
Uber directly controls when and how long drivers can work, but does not pay overtime, Smith said. In some cases, after deducting the necessary expenses for driving a car, the driver’s salary is not up to the local legal minimum wage level.
“Uber has sufficient control over drivers’ work, so they should be considered regular workers,” Smith said
Uber responded to the class action suit by referring to a requirement in the employment contract that drivers must refer future disputes to arbitration rather than litigation. But Smith thinks his client may be an exception.
These network cars transport passengers to and from airports and railway stations, so they are engaged in cross state business, which can avoid the requirement of compulsory arbitration.
In September, the U.S. Court of Appeals for the third circuit found that a grass-roots judge in New Jersey had wrongly ruled in a case that Uber drivers were not eligible for arbitration exemption from interstate business. In the lawsuit, the online car Hailing driver plaintiff said that they should enjoy the overtime paid by Uber.
Justin swift, a lawyer for the prosecution, said many Uber drivers like the flexibility of the job but don’t think they are independent contractors.
Many drivers like the freedom of scheduling