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Tag: california labor commission

Photo illustration of logo of car-sharing service app Uber on a smartphone over a reserved lane for taxis in a street in Madrid

Uber May Owe Billions, as Cal Labor Board Says Drivers Are Employees

In what may the most expensive employee labor claim in history, the California Labor Commission ruled Wednesday that an Uber California drivers is an “employee,” rather than an “independent contractor.” Uber could potentially be on the hook to pay about $200 million in employee taxes and benefits for 2014 alone.

UberX Pie Chart (Hall & Krueger)

Graph: Why California’s Uber Crackdown Could Hurt Workers (In 1 Graph)

The California Labor Comission just ruled that Uber must treat its drivers like normal employees, rather than independent contractors, potentially forcing the company to pay benefits and cover expenses. The decision is being hailed as a victory for worker rights and a major blow to the growing billion-dollar transportation startup.