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Judge rules Grubhub driver was indeed a contractor

Grubhub's mobile app. Photo: Grubhub

A federal magistrate judge ruled Thursday that delivery company Grubhub had correctly classified a Southern California driver as a contractor.

Why it matters: This is a significant ruling for so-called "gig economy" companies, whose business models rely on classifying their workers as contractors. In the last few years, drivers and workers for several companies, including Uber and Lyft, have filed lawsuits against the companies, though none have resulted in a clear conclusion.