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California regulators just took a big step to hurt Uber

by Timothy B. Lee
Justin Sullivan/Getty Images
  • The California Labor Commission has ruled that Uber drivers are employees, not independent contractors as the company had claimed.
  • A San Francisco–based driver, Barbara Berwick, filed a complaint with the commission arguing that Uber must reimburse her for thousands of dollars in expenses she incurs as a driver.
  • The ruling could be a serious threat to Uber’s business model, which relies on maintaining a flexible workforce that sets its own hours and doesn’t receive employment benefits.
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