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California regulators just took a big step to hurt Uber

By Timothy B. Lee Jun 17, 2015, 12:10pm EDT

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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