Today, the California Labor Commission announced its ruling, filed in a state court on Tuesday, that Uber drivers are employees — not independent contractors. While the ruling affects only California, many sharing-economy companies are based in California, which is also their biggest market.

“This ruling will have a chilling effect on the entire sharing economy,” said Berin Szoka, President of TechFreedom. “The independent-contractor business model helped drive the success of Uber, Lyft, Airbnb, and other sharing-economy companies. The Commission’s ruling could force sharing-economy companies to scale back their offerings and increase prices, which could also rob consumers of the flexibility and broad range of choices currently offered by these companies.”


We are available for comment at media@techfreedom.organd see our other work on the sharing economy, especially:

  • “The FTC Should Help Unshackle the Sharing Economy,” a statement from TechFreedom and ICLE highlighting their comments filed on the FTC’s sharing economy workshop
  • “Uber run-in in Amsterdam part of larger war waged by legacy industries,” an op-ed by Evan Swarztrauber in Watchdog Arena