US court grants Uber drivers class action status in employment lawsuit

San Francisco

UBER drivers are entitled to class action status in litigation over whether they are independent contractors or employees, a key development in a case threatening Uber's business model and that of other hot startups dependent on similar service workers.

Three drivers sued Uber in a federal court in San Francisco, contending they are employees and entitled to reimbursement for expenses, including petrol and vehicle maintenance. The drivers currently pay those costs themselves.

The results of Uber's legal battle could reshape the sharing economy, which is built around Internet companies that serve as marketplaces matching people who provide a service with others looking to pay…