Uber agreed to pay New Jersey $100 million in back taxes

The New York Times reported that the state of New Jersey will get $100 million in back taxes from the ride-sharing company.

In November of last year, the New Jersey Department of Labor and Workforce Development accused the company of owing hundreds of millions of dollars in taxes.

According to New Jersey, the drivers were misclassified as contractors for the previous four years, meaning they didn't pay taxes.

The issue of whether or not the drivers are employees has been a point of contention between the company and regulators. In the past, the company has argued that its drivers aren't entitled to benefits such as overtime and sick leave.

The firm gave up a lot in the settlement with New Jersey.

The commissioner of New Jersey's Department of Labor told The New York Times that workers in New Jersey are presumed to be employees.

Workers have rights no matter what business model or technology the company uses.

In a statement to The Times, the company's spokesman said that drivers are still contractors.

An overwhelming amount of drivers in New Jersey and nationwide are independent contractors who work when and where they want.

Insider contacted the New Jersey Department of Labor and Workforce Development, but did not hear back.