New York – While Uber claims their drivers are independent contractors, the state has determined otherwise.

On Wednesday October 12th 2016, the New York State Department of Labor ruled that two former Uber drivers will be considered employees, rather than independent contractors, making them eligible for unemployment.

The New York Taxi Workers Alliance, who brought a lawsuit against Uber on this issue, is now calling for a comprehensive audit of Uber.

Whether or not this ruling will set a precedent for other states is yet to be seen.