Ride-hailing giant Uber (UBER) - Get Report , whose stock has struggled mightily since its debut on Friday, finally got some good news Tuesday when the National Labor Relations Board issued an advice memo from its general counsel saying that the company's drivers are contractors not employees.
The opinion means that workers for companies like Uber are excluded from federal protections for workplace organizing activities, such as creating or joining unions. Earlier this year, the U.S. Department of Labor agreed with the Labor Relations Board's assessment, saying that so-called "gig workers" are contractors.
Uber shares were rising 2.9% to $38.16 on Tuesday but are still 15% below Uber's initial offering price.
Uber has been the subject of labor disputes for years, and protesters even organized a demonstration ahead of the company's debut last Friday.
"Workers can't count on the court system to support them. We've seen that over the last few years of class actions that haven't changed much for drivers. Drivers have to organize to force common sense legislation for fair wages, benefits, and representation regardless of classification," Independent Drivers Guild founder Jim Conigliaro told TheStreet.