California Regulator Says Uber Drivers Are Employees, Not Contractors

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.