Uber Headache: Driver Was Employee, Says State Labor Commission

In a decision that could threaten Uber’s business model, the California Labor Commission has ruled that one of the company’s drivers qualifies as an employee. Uber drivers are usually treated as third-party contractors, who use their own cars to provide rides to passengers found through the company’s mobile phone app. The commission’s ruling means that Uber may have to provide benefits to its drivers and comply with other employer regulations. We’ll discuss the decision and its implications for the so-called sharing economy.

• More: California Labor Ruling: Uber Driver Was an Employee, Not a Contractor
• More: California Says Uber Driver Is Employee, Not a Contractor (NYTimes)