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.
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 department that were first reported Thursday by Bloomberg Law.