Dive Brief:

• New York state regulators ruled last week that two Uber drivers were eligible for unemployment payments after they were "deactivated" from Uber, The New York Times reports.
• The current ruling only affects the two drivers and does not extend to any class, but multiple media reports claim that advocates for the drivers will likely push the state to use the ruling as a basis for future decisions.
• In similar cases throughout the U.S., Uber has either appealed or claimed that classifying drivers as employees would hurt the flexibility that they offer their drivers.

Dive Insight:

Uber — and other gig economy companies — continue to be in the midst of legal troubles when it comes to employee classification. The ride hailing company has gathered a few wins, notably regarding their background check processes, but they've also faced major setbacks in California, where a high-profile case settlement was recently sent back by the court.

One way Uber has gotten around some issues is by allowing its workers to create "driver associations" to bring grievances to the company. Interestingly, the Uber drivers in this case were partly supported by the New York Taxi Workers Alliance, meaning the issue of gig workers and their connection to unions (or union-derivative associations) will likely be carefully watched.