An audit by the New Jersey Department of Labor and Workforce Development of Uber and its subsidiary found that the companies “misclassified hundreds of thousands of drivers as independent contractors.” By doing so, the companies deprived drivers of “important insurance benefits such as unemployment, temporary disability and family leave insurance, and failed to make required unemployment, temporary disability and workforce development contributions,” according to the press release. on Tuesday. according to the DOL.
As a result, Uber and subsidiary Rasier LLC filed a 100 million dollars the DOL payout is $78 million in late fees plus penalties and $22 million in interest. It covers 297,866 drivers and is the largest such payout in New Jersey. All money will go back into state funds, which are used to pay employee benefits and to cover administrative and related costs of the trust fund for all New Jersey workers and employers.
The Department of Labor audited the books of Uber and Rasier for the period 2014-2018. It initially estimated total overdue contributions at $523 million, plus penalties and interest of up to $119 million, based on incomplete data because the companies did not cooperate or share full payroll information. After the companies contested the findings, the case was referred to the New Jersey Office of Administrative Law. Hence the revised estimate of $100 million, which was arrived at after additional information was provided to Uber and Rasier.
Wrong workers are not to blame and can find information about their rights and protections here.
Businesses can find out about the legal requirements and the services provided to them at: nj.gov/jobs.
