California Passes Landmark Bill Requiring Contract Workers to Be Labeled as Employees

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California Passes Landmark Bill Requiring Contract Workers to Be Labeled as Employees
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California passes landmark labor bill requiring contract workers to be labeled as employees despite objections from Uber and Lyft

SACRAMENTO, Calif.—California passed landmark employment legislation that challenges the business model of such “gig-economy” companies as ride-hailing giants Uber Technologies Inc. and Lyft Inc., some of the brightest stars in Silicon Valley over the past decade.

The proposed law, which intends to force companies to reclassify certain contract workers as employees, passed in the Democrat-led state Assembly Wednesday with a preliminary tally of 56 in favor and 15 opposed. The bill passed the state Senate in a 29-11 vote Tuesday...

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