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California Regulator Says Uber Drivers Are Employees, Not Contractors03:44
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David Plouffe, Uber senior vice president of policy and communications, listens as Arizona Gov. Doug Ducey speaks at the opening of the new Uber offices Thursday, June 11, 2015, in Phoenix.  The ride-hailing firm opens their new customer service center that is expected to eventually have several hundred employees. (Ross D. Franklin/AP)
David Plouffe, Uber senior vice president of policy and communications, listens as Arizona Gov. Doug Ducey speaks at the opening of the new Uber offices Thursday, June 11, 2015, in Phoenix. The ride-hailing firm opens their new customer service center that is expected to eventually have several hundred employees. (Ross D. Franklin/AP)
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In a decision that will have major ramifications for the company Uber - namely on how much it is worth and its possible growth - the California Labor Commission says the San Francisco-based transportation service is an employer and must pay employee expenses, including mileage reimbursements, toll charges and interest.

The ruling was made public in an appeal filed Tuesday. If Uber is an employer, it will have to pay way more than it - and investors - expected, reducing the company's potential profit. Marilyn Geewax, senior business editor for NPR, joins Here & Now's Robin Young to talk about the state's decision.

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This segment aired on June 18, 2015.

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