Uber Problems Ahead? California Says Driver is Employee, Not a Contractor

The sharing economy of Uber may have run into an uber problem.

Here’s the scoop: The California Labor Commission ruled that Uber drivers are employees of the ride-hailing service and not , as the company had argued, independent contractors.

The ruling was filed on June 16 in state court in San Francisco and could mean that Uber is on the hook to pay minimum wage and provide benefits like other firms with eligible employees.

The car service is “involved in every aspect of the operation,” the commission wrote in its ruling.”

Uber, which had argued it was an app and not a car service, was appealing a labor commissioner award of about $4,000 in expenses to a San Francisco-based driver.

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