California governor Gavin Newsom on Wednesday signed a controversial law that could shake up the “gig” economy by reclassifying rideshare drivers and others as employees. The legislation, which is being closely watched in other states, responds to critics who argue that companies like Uber and Lyft shortchange contract drivers by denying them employee benefits. Newsom said the new law was a first step toward better treatment of employees and would enable more workers to unionize.
