Uber vs. New Jersey – level 2
The US state of New Jersey says that the ride service Uber owes it around $650 million in unemployment and disability insurance. This is because Uber says that its drivers are independent contractors.
This problem may make Uber change its drivers to employees, which means that they would get paid more. This can increase costs per driver by over 20%.
An Uber representative said that the company is going to fight New Jersey’s action. The representative said that it can take years to resolve this problem.
Difficult words: unemployment and disability insurance (the money that a US company needs to pay to protect workers if they lose their jobs or if they get hurt), independent contractor (a worker who works for a company from a contract or a signed agreement), resolve (to finish, to fix).
You can watch the original video in the Level 3 section.
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