California law will force small businesses to rethink staffing

Joyce M. Rosenberg

The Associated Press

A California law that makes it harder for companies to treat workers as independent contractors took effect Jan. 1, forcing small businesses in and outside the state to rethink their staffing.

The law puts tough restrictions on who can be independent contractors or freelancers rather than employees. Supporters said it addresses inequities created by the growth of the gig economy, including the employment practices of ride-sharing companies like Uber and Lyft that use contractors. Company owners with independent contractors must now decide whether to hire...