Uber lost a pivotal California Labor Commission decision about one of its drivers in California, who was deemed to be an employee and not an independent contractor. While the decision currently applies only to one driver and only to the state of California, where Uber is based, the ripple effect from the controversial determination could affect Uber’s valuation (currently above $40 billion) and eventually increase the cost of its services and operations. Long-term, the ride-sharing dynamo may be forced to provide workers’ compensation, health care and other benefits for drivers if they are considered employees under the law across the board. Other cases involving the independent contractor designation have come up against Uber, but the company has maintained that it acts solely as a “neutral technology platform” to connect drivers and those that wish to hire them. However, in this case, a San Francisco driver argued successfully that Uber is involved in “every aspect of the operation.” Uber has appealed the Commission’s ruling to state court.