Employee or Contractor? Uber’s Driver Policy Takes a Turn

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SACRAMENTO, CA -- Looks like the California Labor Commission just hit the brakes on Uber's driver policy. The ruling says Uber drivers are technically employees of the company and not contractors as Uber once stated.

Uber might not be on board because this opens the door to higher costs like Social Security, worker’s compensation and unemployment insurance.

But come on, Uber is a $50 billion company. We think they can deliver on the benefits.

While this new ruling only applies to Uber drivers in California, it’s not the first time this has happened. Earlier this year a state agency in Florida also ruled drivers were employees.

It’s part of the fine print Amazon will also have to steer through.

The Wall Street Journal also reports that they are developing an Uber style delivery system. The plan is called “On My Way” and it would mean hiring drivers to pick up packages from distribution centers and deliver them straight to your door.

Talk about speeding delivery! But Amazon still hasn't figured out all the kinks, like how to pay drivers.