this is your business report i'm stephen beard zimbalist good to have you with us california both one of the world's largest economies raking close to the u.k. in total annual output or g.d.p. that's what multinational firms pay close attention to regulations in the state and that's why the world is watching california's new gig economy law which went into effect wednesday the measure aims to protect free lance and contract workers by requiring many to be reclassified as employees but there's a lot of controversy around the law. the new california law says some independent workers will have to be treated as employees that means they'd be entitled to minimum wage overtime payments and benefits including health care before the law took effect workers for companies like it were classified as independent contractors as a result right hailing company uber and korea company post might launched a joint legal action against the state of california they argue that the law is unconstitutional and will kill the gig economy which makes their business models possible i also say they can't afford t