Unintended consequences frequently result from well-intended legislation.
Our small performing arts school in Vermont, a state that copied California's legislation, has already been fined for miscategorising several workers. For example, we were told that paying a student to dress up (one time) as a Frozen character for an hour without adding them to our payroll system, submitting UI, SSI taxes etc. was improper. A second offence would result in a $10,000 fine.
Paying a former student, now a Broadway performer, to teach a master class in auditioning (again once) over Zoom (she was sitting in her apartment in Manhattan) as a contract employee was illegal. We needed to put her on the payroll.
The result is a damper on small businesses augmenting programs by bringing in professionals occasionally to enrich our offerings. More importantly, professionals aren't interested in dealing with the paperwork and bureaucracy involved. It simply isn't worth it.
Everyone loses.
I understand that California has already modified its state laws due to complaints from creative artists who make much of their living doing one-off work. Now there are several types of work that are excluded from the law.
Politicians are great at creating simple solutions to complex problems.