MIKE CATALINI and CATHY BUSSEWITZ
TRENTON, N.J. (AP) — New Jersey is seeking more than $640 million from Uber in taxes and penalties, saying the ride-hailing company misclassified its drivers as independent contractors.
The decision is the latest setback for Uber and other companies in the so-called “gig economy” that rely heavily on contract labor to deliver the services at the heart of their popular apps.
Worker advocates say that job classification hurts the laborers and the states where they live, which miss out on tax revenues.
New Jersey’s labor department told Uber it, along with its subsidiary Rasier, owes $523 million in overdue taxes form the last four years and is also facing fines and interest of $119 million, according to letters from the departm