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An Uber spokeswoman, Alix Anfang, said New Jersey's demand for $650 million grossly overestimates the volume of the company's business in the state. (Photo: ALM Media archives) An Uber spokeswoman said New Jersey’s demand for $650 million grossly overestimates the volume of the company’s business in the state. (Photo: ALM Media archives)

Uber’s battle to defend its business model amped up this week with a report that New Jersey has declared the company’s drivers are misclassified as independent contractors. The state is demanding $650 million in unpaid unemployment and disability taxes.

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