New Jersey Struck Uber with Millions in Fines for Worker Misclassification

New Jersey Struck Uber with Millions in Fines for Worker MisclassificationThe state of New Jersey struck Uber with more than $600 million in fines and taxes due to their alleged practice of worker misclassification via labelling employees as independent contractors. The New Jersey Department of Labor and Workforce Development claims that Uber owes over $500 million in overdue taxes as well as fines and interest nearly totaling $120 million from the past four years. Uber, the ride-sharing company based in San Francisco, disagrees and states that drivers are considered independent contractors in New Jersey and many other states. Those who champion the rights of Uber drivers regarding improving their work conditions believe that this is a step in the right direction for Uber employees.

Earlier this year, Governor Phil Murphy created the Task Force on Employee Misclassification which aimed to identify companies engaging in the practice. Companies may be forced to close or accrue fines of $5000 per day if found to be violating any wage laws in New Jersey. Worker misclassification is considered a form of wage discrimination and prevents those misclassified as independent contractors the ability to earn overtime, obtain health insurance through their employers, receive Workers’ Compensation or unemployment benefits, or be eligible for any type of medical or family leave.

The employment law attorneys at Shepherd, Finkelman, Miller & Shah, LLP will protect your rights in matters involving wage discrimination or worker misclassification. If you experienced this at your workplace, we can advise you on your rights and the best course of legal action. Contact SFMS online or call 877-891-9880 to arrange a consultation at one of our many offices throughout the country including those located in California, Connecticut, New Jersey, and Pennsylvania as well as in Florida and New York.

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