So, About That Uber Ruling


Some bad news broke for Uber today — the California Labor Commission ruled that one of the company’s drivers was an employee.

The company has long insisted that those drivers are independent contractors, not employees, and that’s a key part of the company’s model. However, Uber’s situation isn’t nearly as dire as it first seemed.

The initial story from Reuters suggested that the decision applied to all Uber drivers, and some follow-up articles made the same mistake. (We’re guilty. Our story is now corrected.) However, Uber released a statement saying that the decision is “non-binding and applies to a single driver.”

And while you’d expect the company to downplay the significance here, I also spoke to several lawyers and legal experts, who confirmed that that’s the case.

For example, startup-focused lawyer George Grellas wrote on Hacker News that “this ruling has basically symbolic importance only.” That’s particularly true since…

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