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.

The rulings by the New York State Department of Labor were sent to the two Uber drivers (one also worked for Lyft) in August and September but have not previously been reported. They apply only to their unemployment insurance claims and do not directly affect other drivers or extend to other protections normally accorded employees.