New Jersey Says Uber Owes It Up To $650 Million In Taxes And Penalties

Uber faces a $650 million tax assessment from New Jersey for misclassifying drivers as independent contractors. The state demands $523 million in back taxes and up to $119 million in penalties. This could force Uber to classify drivers as employees, increasing costs by over 20%. Uber plans to challenge the decision, claiming drivers are contractors, and the resolution may take years.

What are the implications for drivers if they are classified as employees under state law?

How long could the process of resolving the Labor Department's decision potentially take?