Uber, Lyft Being Probed in New Jersey on Misclassifying Drivers

New Jersey labor auditors are investigating Uber Technologies Inc. and Lyft Inc. to see if the rideshare companies are wrongly classifying drivers as independent contractors and should be on the hook for employment taxes, according to documents obtained by Bloomberg Law.

The state Department of Labor and Workforce Development is trying to determine if the companies must start paying for drivers’ unemployment insurance and whether drivers have to divulge their rideshare earnings when seeking jobless benefits. If the state decides that drivers are employees, Uber and Lyft would also be responsible for paying drivers minimum wages and overtime, and providing ...