Uber Technologies Inc. and its subsidiary Rasier LLC have submitted a $100 million payment to the New Jersey Department of Labor and Workforce Development’s Unemployment Trust Fund after an audit found the ride-hailing companies misclassified hundreds of thousands of drivers as independent contractors. announced on Tuesday.
The companies deprived drivers of “crucial safety net benefits such as unemployment, temporary disability and family leave insurance, and failed to make required unemployment, temporary disability and workforce development contributions,” the department said in a statement.
The San Francisco-based app-based company and Rasier also stripped drivers of minimum wage, overtime pay, workers̵7; compensation, earned sick leave, family leave and other benefits, according to the statement.
The payment follows Labor Department audits that assessed Uber and Rasier a total of $78 million in back taxes, plus penalties and interest of $22 million. It is the largest such payment ever received in New Jersey and covers 297,866 drivers, according to the statement.