New Jersey says Uber is 'misclassifying' drivers as contractors, asks for $650 million...

[Polycount]

In context: Uber has been battling with state regulators for years over the status of its employees. Uber wants to continue classifying them as contractors, but many authorities feel they should be considered full employees, and thus be granted all the benefits that come with such a status, including paid time off and sick leave.

For Uber, classifying its drivers as employees would probably be quite the nightmare scenario. The added expenses that would come with giving its workers full benefits might not sink the company, but it would certainly take a huge bite out of its bottom line.

As such, it's no surprise to see Uber fight against potential regulations to the bitter end. Even in states where new laws seemingly target the company's business practices directly, Uber has attempted to wriggle its way out of the dilemma. For example, California recently voted in favor of rules that would force many contractors to be considered employees (effective January 2020). Uber said it was exempt from these rules because the act of driving for the company is somehow outside the usual course of its business.

Unfortunately, those sorts of arguments aren't likely to help Uber out much in New Jersey. The state has officially asked Uber for roughly $650 million in overdue unemployment and disability insurance taxes because it's been "misclassifying" its drivers as contractors.

That's quite the sum, and as you'd expect, Uber plans to "challenge" the state's "preliminary but incorrect" determination. We'll let you know how that goes.

Permalink to story.

https://www.techspot.com/news/82783-new-jersey-uber-misclassifying-drivers-contractors-asks-650.html

 

[m4a4]

Hmmm... it's almost like forcing your way into the market and trying to get around rules and regulations can bite you in the butt later on...

 

[Yynxs]

I love how taxed and controlled taxi drivers and their licensing is but Uber claims a free pass because...well 'tech'. I hope New Jersey wins this then every taxi driver that lost money obeying the laws gets to sue separately for loss of income.

 

[Uncle Al]

Uber really needs to get some first rate managers on board if they hope to survive. There is simply NO reason not to have covered all of this with each state's Dept. of Transportation and Dept. of Taxation .... either they are criminally negligent or simply trying to get away with it as long as they can until they get caught .... with is .... criminally negligent .... OH!!! It's a win/win ... For NJ

 

[Lionvibez]

I hope uber wins who the hell wants to be stuck with high priced taxi's as the only option I sure as hell don't.

 

[psycros]

What makes the writer think that all employees get paid time off and other benefits? Ask any fast food or convenience store worker about their "benefits". Uber would be about on that level.

 

[tkabou]

Another state with left/liberal governing going broke and looking for new ways to tax people. It's all they know -taxes upon taxes upon taxes.

 

[Yynxs]

I hope uber wins who the hell wants to be stuck with high priced taxi's as the only option I sure as hell don't.

Don't you wonder why taxis are expensive? Do you know how much insurance, inspections, health checks, etc. go into a taxi license? Perhaps you should talk to your representatives about canceling or reversing the regulations that govern taxi services. Uber has done all this for you. Now the questions: Does your Uber driver have liability insurance that covers all your hospitalization in case of accident? Was your Uber driver's vehicle inspected and cleared for passenger service? Are the tires bald? Was your Uber driver required to pay for a several thousand dollar meter to be installed and regularly certified for accuracy? Was your Uber driver authorized to enter the area some taxi companies are not allowed to service? (They're not allowed to service so small local companies don't get swallowed by big chains and then create super long wait times because the big chains don't keep engines idling where there is no regular active business). The list of questions goes on for several pages. The short version is: your taxi driver is heavily regulated and regulations cost money to comply with. Talk to your government representatives about leveling that playing field (good luck with that as taxis collect special taxes for the government).

 

[cliffordcooley]

Does your Uber driver have liability insurance that covers all your hospitalization in case of accident?

And here is one of societies problems right here. Stop being dependent on someone else's insurance. That is one of the biggest causes of high insurance. We have to cover everyone else's expensive habits not just our own. Get your own insurance, if you are worried about coverage.

 

[Yynxs]

And here is one of societies problems right here. Stop being dependent on someone else's insurance. That is one of the biggest causes of high insurance. We have to cover everyone else's expensive habits not just our own. Get your own insurance, if you are worried about coverage.

Based on that and this article, get your own car and stop depending on someone else's investment.

There are myriad reasons for taxis and uber. Damaged eyesight, late term pregnancy, alcohol, being in a different state than your home on business/pleasure, etc.

A major cause of high insurance, btw, is litigation. Here's something from 2008 that hasn't changed that much. https://www.motorists.org/blog/why-does-car-insurance-cost-so-much/. Similar reasons for medical charges. (aside from the 'free' emergency room for indigent care).

Henry VI, Part 2, Act IV, Scene 2.

 

[Irata]

I hope uber wins who the hell wants to be stuck with high priced taxi's as the only option I sure as hell don't.

Yeah, nothing like underpaid quasi slave labor to make your life better.
The other option would be public transport (needs tax money) or getting your own car.

Do you know who pays for medicaid and food stamps that underpaid employees get and the infrastructure Uber uses? Taxpayers do.

 

[jpuroila]

Honestly, Uber executives should all be in prison by this point. They've repeatedly and consistently shown disregard for laws everywhere they operate.

 

[BadThad]

Another state with left/liberal governing going broke and looking for new ways to tax people. It's all they know -taxes upon taxes upon taxes.

Classic liberal government extortion - none of those states can tax people enough to satisfy their greedy needs.

 

[Lionvibez]

Don't you wonder why taxis are expensive? Do you know how much insurance, inspections, health checks, etc. go into a taxi license? Perhaps you should talk to your representatives about canceling or reversing the regulations that govern taxi services. Uber has done all this for you. Now the questions: Does your Uber driver have liability insurance that covers all your hospitalization in case of accident? Was your Uber driver's vehicle inspected and cleared for passenger service? Are the tires bald? Was your Uber driver required to pay for a several thousand dollar meter to be installed and regularly certified for accuracy? Was your Uber driver authorized to enter the area some taxi companies are not allowed to service? (They're not allowed to service so small local companies don't get swallowed by big chains and then create super long wait times because the big chains don't keep engines idling where there is no regular active business). The list of questions goes on for several pages. The short version is: your taxi driver is heavily regulated and regulations cost money to comply with. Talk to your government representatives about leveling that playing field (good luck with that as taxis collect special taxes for the government).

I'm well aware of all of this.

I just don't care what I care about is how much money is leaving my pocket. They don't pay me to care about regulation and the layers that the taxi company has to deal with. I'm just a customer and the price I pay is all that matters to me. And Uber has allowed me to save money. And at the end of the day that is all that matters to me.

 

[cliffordcooley]

what I care about is how much money is leaving my pocket.

They don't pay me to care about regulation

Half of which are BS.

 

[Yynxs]

I'm well aware of all of this.

I just don't care what I care about is how much money is leaving my pocket. They don't pay me to care about regulation and the layers that the taxi company has to deal with. I'm just a customer and the price I pay is all that matters to me. And Uber has allowed me to save money. And at the end of the day that is all that matters to me.

You can't really convince people that don't want to see. For those of you who don't actually understand the basis of civilization and the government attempting to maintain a peaceable status quo: regulations are designed to protect the consumer, red tape was designed to keep the "heroes" and "explorers" from going out and killing themselves with starry-eyed people's money, taxes are designed to fund this 'protection' of the consumer.

Uber doesn't want to pay these taxes. They just want to have other people take the risks, do the work and collect a percentage of what they make. People that say "I only care about my wallet" are the first ones to complain to the government when they are robbed by other people avoiding the regulations designed to prevent the robbery or the accident or the death.

Government is often slow to catch up with change, demographic or technological, but catch up it does. New Jersey, and every other state or municipality that will jump in after the suit, is catching up and the consumer will eventually be afforded the same protections that apply to taxis rides.

You can try to prevent this by changing the rules on taxis (as I mentioned) which will allow Uber to keep charging less and get taxi prices lowered or you can wait and the government will start collecting the same taxes and applying the same regulations and costs will rise to accomodate those changes.

 

[cliffordcooley]

People that say "I only care about my wallet" are the first ones to complain to the government when they are robbed by other people avoiding the regulations designed to prevent the robbery or the accident or the death.

So! How many years now have there been regulations to prevent drug usage? Regulations are simply a platform for government to prosper on societies absolute refusal to change.

 

[Yynxs]

So! How many years now have there been regulations to prevent drug usage? Regulations are simply a platform for government to prosper on societies absolute refusal to change.

What was the daily death toll on fentanyl again? How about those 'accidental' vaping deaths? Wait was that illegal THC? who knew? pretty funny huh? You're too young to remember 'brown acid'.

Yep. Some people will not obey the laws. Guess we should just toss the laws and let Darwinism sort it out. Probably work with Uber if not for those pesky few raping drunk women trying to get home and the women just having to complain.

 

[cliffordcooley]

Guess we should just toss the laws and let Darwinism sort it out.

Since we are not doing anything to fix the fundamental flaws in our society. We might as well go ahead and do just that. Regulations sure as hell are not doing any good. A good portion of the time, they only serve to protect guilty parties.

 

[Yynxs]

Since we are not doing anything to fix the fundamental flaws in our society. We might as well go ahead and do just that. Regulations sure as hell are not doing any good. A good portion of the time, they only serve to protect guilty parties.

Yeah. Can't really count that ending slavery, ending Jim Crow, Women's Vote, Equal Rights Act, Gay Marriage, RICO statutes, voting age to 18, EPA, Clean Water Act, Clean Air Act, Toxic Substances Control Act, Fair Housing Act, FOIA, DOMA and it's overthrow, etc. etc. etc. as fixing. Mere bandaids you would say.
And, uh, regulations are not laws.