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Uber Might Briefly Shut Down In California After Court Rules That Drivers Are Employees

Even before AB5, states have been using ABC tests, and court rulings have declared that Uber drivers aren’t independent contractors. These rulings are costly for Uber, who was found to owe $649 million in unpaid unemployment taxes in New Jersey last year. A UC Berkeley study estimated that in California, Lyft and Uber should have paid $413 million into the state unemployment fund.