Gig economy companies are fighting back against a new law that is supposed to prevent them from hiring independent contractors with lawsuits and noncompliance. Employee vs independent contractor: The California law, Assembly Bill 5, codified a State Supreme Court ruling that said workers were employees if they performed tasks related to a company’s regular business operations or were under the hirer’s supervision. The main targets are gig economy companies like Uber and Lyft, which have classified drivers as independent contractors to save money and to avoid certain employment protections.