Uber Technologies Inc. must pay the state of New Jersey approximately $650 million in insurance and unemployment taxes after allegedly misidentifying its drivers as independent contractors rather than employees, according to a report.
The ride-sharing company owes $523 million in overdue disability insurance and unemployment taxes that were not paid over the course of the past four years, Bloomberg Law reported, citing the state’s Department of Labor and Workforce Development. Uber also allegedly owes up to $119 million in accrued penalties and interest.
“We are challenging this preliminary but incorrect determination because drivers are independent contractors in New Jersey and elsewhere,” Uber spokeswoman Alix Anfang told FOX Business.
In a statement to Bloomberg Law, New Jersey Labor Commissioner Robert Asaro-Angelo called “cracking down on employee misclassification” a “priority.” The Labor Department did not immediately respond to FOX Business' request for comment.
Uber has been under recent scrutiny. On Wednesday, Chicago Mayor Lori Lightfoot accused the ride-sharing company of bribing black ministers. It also faced backlash on Twitter after CEO Dara Khosrowshahi called Jamal Khashoggi's murder a "mistake."