If you don't follow the law you will get in trouble.
The fun thing here is that it is not Uber that got in trouble, but their drivers. Which aren't their employees, btw. Uber just looses a bit of revenues. The drivers, though, which own the cars, now have real problems.
That's the real innovative thing in Uber. They have found a way of shielding themselves from any problems. It really is genius, albeit evil genius.
Surge pricing has an interesting dark side that I see nobody talk about: cars are often too cheap for the service to be sustainable, in the sense that the money does not even cover the running costs of the cars when considering wear and loss of value on purchase price. Since noticing this implies a complex calculation as well as the mental makeup to take such calculations seriously, most drivers just don't notice. They are literally loosing money. Uber, however, always makes money.
It really is genius.