Governor signs law on protections for Uber drivers, others

California's governor has signed sweeping labor legislation that aims to give wage and benefit protections to rideshare drivers at companies like Uber and Lyft and to workers across other industries.

The closely watched proposal could have national implications as lawmakers, businesses and unions confront the changing nature of work and the rise of the so-called gig economy.

The legislation signed by Gov. Gavin Newsom makes it harder for companies to classify workers as independent contractors instead of employees, who are entitled to minimum wage and benefits like workers compensation.

Uber, Lyft and DoorDash are pushing Newsom to come up with a third option for gig companies and have threatened to spend $90 million on a 2020 ballot measure if they are not successful.

Newsom, for his part, said he wants to keep negotiating with labor and business leaders to ensure that gig workers can collectively bargain.