In what worker advocates are calling a substantial victory that could impact Uber drivers statewide, the New York State labor review board has made a final determination that three former Uber drivers were Uber employees for the purposes of unemployment insurance.

The finding applies to the drivers in question, as well as all “similarly situated” drivers.

The issue of unemployment insurance, while seemingly arcane, underscores a pivotal question for the global gig economy: Are the people driving for Uber or delivering coffee for Postmates independent contractors or are they employees with benefits like unemployment insurance?

New York state now appears closer to having an official position, one that Uber fought hard to forestall. The company has exhausted all options for challenging that decision within the confines of the labor department.

“We won and they lost,” said New York Taxi Workers Alliance Executive Director Bhairavi Desai, in an interview on Wednesday.

They are in a no win situation here:  Either they play this like the old Uber, or the the possibility of profit becomes even more ephemeral.