Gig companies backed Prop. 22 in 2020 to win themselves an exclusion from AB 5, which would have upended their business models by requiring them to consider their drivers and delivery workers as employees.
With a 5.2% unemployment rate, the highest in the nation for the past four months, California is also losing high-wage jobs that help fund the state budget.
A new law, sponsored by Attorney General Rob Bonta, will create a fund designed to fully compensate victims of false advertising or unfair competition.