The San Jose Mercury News reports a Florida agency ruled an Uber driver is an employee in the case of a man who filed for unemployment benefits after the ride-sharing service deactivated his account. Uber can still appeal the decision.

Uber along with Lyft and other online firms that use independent contractors to provide services have also come under fire with lawsuits from drivers claiming they are employees and not independent contractors.

The lawsuits could be extremely damaging to companies like Uber that aim to serve as platforms matching users with independent contractors.

“Uber may choose to appeal this decision but before the trickle of cases like this becomes a flood they may be better advised to review their business model and reduce the level of control they have over drivers,” said Fiona Coombe, director of legal and regulatory research at Staffing Industry Analysts. “It is this question of control over what service, and how the service is provided, that is the focus of these cases, and which could prove to be very costly if drivers are found to be employees.”

In a separate report, Benzinga reported Uber is seeking a $1 billion credit line and the move could presage an IPO.