Uber drivers seeking employee status rather than work as independent contractors just scored an important victory, as their lawsuit can now proceed as class action.

Facing legal action over employee benefits, Uber motioned for a quick judgment but it didn't get its way. On Tuesday, Sept. 1, a San Francisco federal judge ruled in favor of the plaintiffs, allowing them to proceed with a class-action lawsuit against Uber. The plaintiffs seek to force Uber to hire them as employees, not independent contractors.

This ruling could have a great impact for the on-demand transportation company, as well as other companies with similar approaches. The on-demand market is rapidly growing, aiming to offer more convenience by allowing customers to order car rides, grocery delivery or food delivery via smartphone apps.

While it's convenient for customers, however, drivers involved in such services are not as happy about it. The lawsuit Uber drivers filed against the company claims that Uber should reimburse drivers for gas and various other expenses, basically re-designating from contractors to employees.

With U.S. District Judge Edward Chen granting class-action status, the lawsuit now represents most drivers who have worked for Uber at any time starting from Aug. 16, 2009.

Uber asked the judge to drop the class-action part of the lawsuit arguing that the three people who filed the suit did not represent all Uber drivers in California. The company collected testimonials from roughly 400 drivers who stated that they want to keep working as contractors rather than employees, but the Judge rejected this argument and ruled not to dismiss the class-action part.

"Plaintiffs Douglas O'Connor, Thomas Colopy, Matthew Manahan, and Elie Gurfinkel are current or former drivers who have performed services for Defendant Uber Technologies, Inc. Docket No. 330. (Second Amended Complaint) (SAC)," notes the ruling (PDF). "They are prosecuting this lawsuit against Uber on behalf of themselves and a putative class of approximately 160,000 other 'UberBlack, UberX and UberSUV drivers who have driven for Uber in the state of California at any time since August 16, 2009.'"

The ruling doesn't reclassify the drivers as employees just yet, but it nonetheless marks a notably victory for the plaintiffs. It remains to be seen how everything will pan out, but Uber will likely file an appeal.