Uber was fined 650 million. Why was Uber fined at sky high prices
The 'casual economy' enterprises represented by Uber have always faced a dispute, that is, they treat employees as outsourcing workers rather than formal workers, which is considered to have carried out labor exploitation and damaged the interests of practitioners.
According to the latest news from foreign media, New Jersey recently fined Uber $649 million, requiring the company to pay arrears of employment tax for online car Hailing drivers. New Jersey accused the online car Hailing company of mistakenly treating drivers as independent contractors rather than regular employees.
According to foreign media reports, in an audit, New Jersey found that Uber owed $530 million in employee unemployment and disability insurance from 2014 to 2018. Then the state's Labor Development Department asked Uber and its subsidiary raiser to pay a huge amount of money this week.
In addition to its historical tax arrears, the state seeks an additional $119 million in interest.
This incident marks a major change in the views of many application-based casual economic companies in the United States. It is also the first time that the U.S. local government has recovered employment tax from Uber. Today, Uber has hundreds of thousands of online car Hailing drivers in the United States.
Uber's spokesman said the company questioned the findings of the New Jersey investigation. " We question this incorrect decision because in New Jersey and elsewhere, online taxi drivers are independent contractors. " Uber spokeswoman Alex & middot; The Angolan side said so.
Across the United States, states and cities are actively rectifying casual economic companies that rely on cheap and independent labor, which may reshape their business model. Before that, the outside world questioned and opposed the outsourcing employment mode of the odd job economy and asked for change, but the odd job economy company won in some disputes.
In California, a new law will require outsourcing workers in casual economic companies to be recognized as regular workers, so that they can receive basic protection such as minimum wage and unemployment insurance.
Driven by labor groups, similar legislation has emerged in New York, Oregon and Washington. In New York City, online taxi drivers have not been officially recognized as regular workers, but they can already receive the legal minimum wage.
Last week, the New Jersey Senate passed legislation that would restrict some companies from treating employees as independent contractors. As regular workers, these employees are entitled to basic protection and benefits, such as overtime pay, health care insurance and unemployment insurance.
According to the prediction of industry institutions, if government regulators or courts require casual economic companies such as Uber and LYFT to treat employees as employees, their labor costs may rise by 20% to 30%.
'the New Jersey Department of labor development is cracking down on the misclassification of employees because it stifles our labor force and causes great losses to our economy, 'said Robert & middot, Commissioner of the Department; Asaro Angelo said in a statement.
Some labor organizations in the United States praised the action taken by the New Jersey government.
"This is a sharp attack on the designers of the casual economy. We hope it can penetrate into other industries." Batilawi & middot, executive director of New York taxi drivers alliance; Bhairavi Desai said in a statement. " New Jersey is sending a message that its labor laws are not made by private companies. "
It is reported that the New Jersey government audited 1% of employers in the state in 2018 and found that more than 12000 employees were incorrectly classified as independent contractors. The state government said that according to this figure, enterprises understated wages and employment taxes by more than $462 million.
Previously, some Uber online car Hailing drivers sued the company in New Jersey, claiming that they should be regular employees. At present, they have not been paid enough and have not been able to reimburse their daily operating expenses.
'it's a double blow,' said Roosevelt, a New Jersey lawyer; Smith said he filed a class action lawsuit on behalf of several online taxi drivers.
Smith said Uber directly controls when drivers can work and how long they can work, but does not pay overtime. In some cases, after deducting the necessary expenses for driving a car, the driver's salary can not reach the local legal minimum wage level.
Smith said, 'Uber has enough control over the work of drivers, so they should be regarded as regular workers.'
Uber responded to the class action by referring to a requirement in the employment contract that drivers must submit future disputes to arbitration rather than litigation. But Smith thinks his client may be an exception.
These online car hails transport passengers to and from airports and railway stations, so they engage in cross state business, which can avoid the requirements of mandatory arbitration.
In September this year, the U.S. Court of Appeals for the third circuit found that a grass-roots judge in New Jersey ruled in a case that Uber drivers were not eligible for arbitration immunity for cross state business. This decision was wrong. In this lawsuit, the plaintiff of online car Hailing drivers said that they should enjoy the overtime paid by Uber.
Justin & middot, the plaintiff's lawyer in this lawsuit; Si Weide said that many Uber drivers like the flexibility of this job, but do not think they are independent contractors.
Si Weide said that many drivers like the freedom of time arrangement. Driving online car Hailing can be a part-time job, but in New Jersey, drivers can have these things at the same time, that is, as regular workers, they can choose flexible working hours.
The lawyer asked: 'if you ask the online taxi driver, & lsquo; Do you think you are running a company completely independent of Uber& rsquo; You will get a general negative answer. "