In a decision that could have major implications for the way Uber does business in its home state, the California Labor Commission has ruled that a driver was an employee when she was driving for the company.

Uber has always claimed that its drivers are contractors, a classification that means Uber doesn’t have to provide them multiple employment benefits, but the ruling challenges that assertion.

The decision was reached earlier this month by the labor board after a hearing on a dispute between a former Uber driver, Barbara Berwick, and Uber. Berwick had sued Uber, claiming she was owed unpaid wages, car expenses and interest.

The decision became public on Tuesday when it was filed with the state court in San Francisco. It was first reported on Wednesday by Reuters.

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