The California Labor Commission has found that a driver for Uber in San Francisco is an employee of the company.

Questions:
1. Why is this such a nightmare for Uber?
2. Discuss how this will change the company’s accounting system and business model if this ruling is upheld and the costs involved.
3. The article talks about the 1099 economy and the importance of addressing this issue. In a paragraph, explain the term 1099 economy and why this case is so important. Give examples of other industries.

Source:
Griswald, A. (2015). A California Labor Ruling Just Said an Uber Driver Is an Employee. That’s Uber’s Worst Nightmare. Slate.com, June 17
(Retrievable online at http://www.slate.com/blogs/moneybox/2015/06/17/uber_drivers_ruled_employees_by_california_labor_commission.html)