In an unprecedented ruling in New York, the state Department of Labor deemed two Uber drivers employees of the company.
"In what labor advocates are calling a landmark victory, two former drivers for Uber in New York have been determined to be employees of the company and therefore eligible for unemployment insurance benefits," according to an article by Matthew Flamm.
The ruling resolved a lawsuit by the New York Taxi Workers Alliance against the New York Department of Labor "to force the state agency to rule on the [unemployment] claims" filed by two drivers. The Department of Labor had previously taken no action on the claims.
As for the implications of the ruling, "advocates believe that the decisions open the door to a more widespread reclassification," which "could dramatically raise costs for the companies and reshape their competition with taxis."
Read the full story: Uber setback: Two drivers are deemed employees, not independent contractors
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