Uber drivers could be employees... in Brazil

Uber drivers just won a major victory — but only in Brazil.

A judge in Sao Paulo ruled that a driver in the city had to be considered an employee of the ride-hailing giant. Uber plans to appeal the decision.

"By connecting drivers and users, Uber creates thousands of flexible opportunities for generating income," Uber said in a statement.

Uber drivers are considered independent contractors, which means they work for Uber but aren't entitled to employee benefits or protections. That model is key to Uber's success — and the successes of gig economy companies like TaskRabbit and Instacart that also rely on fleets of independent workers.

Uber has faced similar cases in the United States, including a major class-action lawsuit in California. DoorDash paid $5 million to settle a lawsuit over the same issue just last week.

In Brazil, Uber was ordered to pay the driver involved about $25,000, which included compensation for holidays and contribution to a severance fund — the kind of benefits actual, official employees are entitled to.