No Uber hail for ‘ fare play’ rule

Uber’s costs may rise — and its reported $ 50 billion valuation could fall— following a California ruling that its drivers are employees, not contractors.

The California Labor Commission ruled that since Uber is involved in every aspect of San Francisco driver Barbara Ann Berwick’s workday, shewas an employee — not an independent contractor.

Berwick, who asked Uber to reimburse her for more than $ 4,000 in expenses— but was denied the money— should get the cash, the commission ruled.

Uber’s business model carries many of the hallmarks of a company with full fledged employees— possibly exposing it to obligations ranging from cost reimbursements to benefits, it ruled in a June 3 decision that came to light thisweek.

“Defendants hold themselves out as nothing more than a neutral technological platform, designed simply to enable drivers and passengers to transact the business of transportation,” the commission wrote of Uber. “The reality, however, is that defendants are involved in every aspect of the operation.”

Uber appealed the decision and said it was “nonbinding and applies to a single driver.”

Uber added that cases in five other states, including Georgia, Pennsylvania and Texas, have ended with rulings that drivers are independent contractors.

Nevertheless, the California ruling will likely encourage drivers in other states, including New York, to seek reimbursements for costs, said Bhairavi Desai, executive director of the New York Taxi Workers Alliance.