In the state of California, the popular ridesharing service Uber is under serious attack. We’ve covered how earlier this year, the California Labor Commission issued a ruling that the company’s drivers should be classified as employees, rather than the independent contractors Uber claims they are. This classification has major implications for Uber and all similar services in the future, since employees are subject to massive labor regulations from which contractors are exempt. The cost of complying with these regulations would be crippling, if not fatal, for Uber’s services in California, and the door would be closed on any businesses with a similarly innovative business model in the future.