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  • 10.13.16

NY rules that Uber drivers are eligible for unemployment benefits, which could disrupt its business model

New York State regulators have determined that two former Uber drivers (one who also drove for Lyft) are eligible for unemployment payments, according to the New York Times, which discovered the ruling through a Freedom of Information Act request. Uber classifies its drivers as independent contractors, who are not eligible for unemployment benefits. Though the ruling applies only to the two drivers, it may be used to argue in other arenas that Uber is an employer, which would disrupt its business model by requiring Uber to pay into social safety net programs on behalf of its workers and to follow other labor laws.SK