Uber drivers scored a victory Tuesday as a federal judge ruled that they may move forward with a class-action lawsuit that seeks to turn them from contractors into employees.

U.S. District Judge Edward Chen in San Francisco found against Uber’s argument that the lawsuit shouldn’t be certified as a class action and that it should be limited to just three plaintiffs. Chen had earlier denied Uber’s motion for a quick judgment in the case.

As many as 160,000 Uber drivers, some of whom have sought more worker protections and benefits could be affected by the case.

If the courts say they are employees, it would substantially increase Uber’s costs of doing business and restrict the company’s approach to managing its drivers. On the other hand, Uber drivers would gain more rights and benefits.


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