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In California, Uber Driver Is Employee, Not Contractor


Ron Burgundy
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Uber driver Levin protests with other drivers against working conditions, in Santa MonicaA driver for Uber is an employee, not a contractor, according to a California ruling that eventually could push up costs for the smartphone-based ride hailing service and hurt the closely watched start-up's valuation. The California Labor Commission's decision could ripple through the burgeoning industry of providing services via smartphones, with potential implications for other “crowdsourced†services such as Uber rival Lyft, chore service TaskRabbit, and cleaning service Homejoy. The ruling - which Uber insisted applied to only one driver - was the latest in a series of legal and regulatory challenges facing the company and other highly valued start-ups in the United States and other countries.




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