This case is one of a series of legal challenges Uber is battling across the country and the world as it tries to avoid having to pay for the sort of benefits employers provide. | AP Photo/Diane Bondareff State labor judge finds Uber an 'employer'

In a big win for driver advocates that could have cascading effects for Uber in New York State, a New York administrative law judge has found that three Uber drivers and their "similarly situated" colleagues in New York City are employees under state labor law.

What that means, in practice, is that a state judge believes Uber must provide unemployment insurance for the three Uber drivers named in the case, as well as an indeterminate number of "similarly situated" drivers in New York City.


The judge does not define what "similarly situated" means, but advocates believe it applies to all Uber drivers in New York City. Uber is certain to contest that.

In her opinion, administrative law judge Michelle Burrowes writes that the "the overriding evidence establishes that Uber exercised sufficient supervision, direction, and control" over enough aspects of the three drivers to create an "employer-employee relationship."

"I, conclude, therefore, that the claimants, and others similarly situated, are/were employees of the employer, Uber," she writes.

New York Taxi Workers Alliance executive director Bhairavi Desai said, “The message here is simple: If you're going to control the workers to maximize your profits off their labor, you owe them their rights and benefits under the law."

The case, brought by the Taxi Workers Alliance and Brooklyn Legal Services, was first reported by POLITICO New York. It is one of a series of legal challenges Uber is battling across the country and the world as it tries to avoid having to pay for the sort of benefits employers provide.

"This is an extremely important decision," said Nicole Salk, of Brooklyn Legal Services. "It is the first unemployment insurance benefits decision, after a full hearing, regarding Uber drivers in New York State."

"Now Uber will have to make unemployment contributions to the state for these workers," she added, "and we believe it owes the state contributions for every Uber driver."

The company now has 20 days to appeal Burrowes' decision to a higher level of the Unemployment Insurance Appeal Board, after which it can contest the case in a state appeals court.

It has every intention of appealing.

"We are immediately requesting a new hearing and appealing this decision," said Uber spokesman Josh Gold. "We are confident we will prevail — the Department of Labor has already ruled that several drivers are independent contractors and a Federal Court has deemed all black car drivers to be independent contractors."

UPDATE: This story has been updated with comment from the New York Taxi Workers Alliance.