The California Labor Commission on Tuesday ruled that drivers for the San Francisco-based ride-hailing service Uber are employees, not independent contractors, Reuters reported.  

The ruling will bring significant cost increases for the company, which had previously claimed its drivers are independent contractors and that Uber is "nothing more than a neutral technology platform." These costs include Social Security, workers' compensation and unemployment insurance. 
The decision was made as part of a claim against the company made by San Francisco-based driver Barbara Ann Berwick, who worked as an Uber driver for about two months and argued the company owed her $4,000 in expenses. 

According to Reuters, Tuesday's ruling only affects California at this time but will likely trickle into other states.