Some Uber Drivers May Be Entitled To Unemployment Benefits

An administrative ruling out of New York state found that, under certain conditions, Uber drivers may be entitled to state unemployment benefits. The NYS Department of Labor (DOL) ruled that two Uber drivers were eligible for weekly jobless benefits. This represents the first time that a state government determined that drivers for a ride-sharing company are employees. To date, states have found – and companies like Uber have argued – that drivers for ride-sharing companies were independent contractors who are ineligible for jobless benefits. We here at The New York Law Blog have discussed the differences between an employee and an independent contractor in the context of continuing federal litigation involving Uber. Uber and other ride-sharing companies are part of a larger development in business termed the “gig economy,” which is an environment where independent workers contract for temporary positions for short-term engagements. Uber’s critics have argued for some time that it

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