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Uber Drivers Ruled Eligible for Jobless Payments in New York State

Two former drivers for Uber are eligible for unemployment payments, New York State regulators have ruled, finding that they should be treated as employees rather than independent contractors, as the company has maintained.

Unlike contractors, employees are entitled to a variety of rights and protections, including a minimum wage and workers’ compensation insurance, and are typically more costly for companies to rely on.

The decision could make it more difficult for Uber, its rival Lyft and other new businesses operating in what is known as the gig economy by raising their costs and challenging their business model.

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