SACRAMENTO, Calif. (AP) - California Gov. Gavin Newsom has signed sweeping legislation aimed at giving wage and benefit protections to rideshare drivers and workers in other industries.
The legislation makes it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits such as workers compensation.
Its potential effect on companies like Uber and Lyft had prompted intense lobbying at the Capitol.
Newsom in a Wednesday signing message called the legislation an important step to rebuilding the middle class.
There's been dispute over whether making rideshare workers employees will allow them to unionize.
The federal government considers so-called gig workers to be independent contractors.
Newsom says he wants to convene labor and business leaders to find a way to ensure those workers can organize.
