Pending before the New Jersey Office of Administrative Law is Uber Technology's appeal from the $650,000 fine assessed by our Department of Labor and Workforce Development for classifying its drivers as independent contractors instead of employees. The issue is of national importance because of the rise of what is known as the "gig economy," in which part-time workers are classified as independent contractors in order for the employer to avoid wage and hour, unemployment compensation, workers' compensation and occupational safety obligations. Revenue losses to the states can be substantial. It has been reported that in California, the difference between classifying ride share drivers as employers or independent contractors meant a difference of $400 million per year in unemployment compensation taxes.