The Uber business model could be taking a hit as California Labor Commissioner Julie Su has ruled that their drivers are employees and not independent contractors.

The Uber app is shown on a phone (David Ramos/Getty Images)

 

What that means if the ruling is upheld is that employees are entitled to a minimum wage and overtime pay, among other things, so much for the work your own hours. This could force Uber to place limits on when and how much Uber drivers are allowed to work

Uber would also have to provide compensation for expenses incurred on the job, workers compensation and unemployment benefits. This could force Uber to place limits on when and how much Uber drivers are allowed to work.

The difference between an employee and independent contractor is that one has a lasting relationship with the company, usually set hours to report, payroll deductions taken out whereas independent contractors come and go as they please and pay their own expenses

Do you think Uber drivers should be classified as employees or independent contractors?

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