 The law also gives cities in the state the right to sue companies for violating the law, where previously they could not.The California Attorney General's office and local prosecutors can also sue companies.Proponents of the bill said it would give workers previously classified as contractors minimum wage, overtime, sick leave, unemployment and other benefits, and prevent the state from losing $8 billion from payroll taxes that independent contractors and companies who use them do not pay and social benefits required due to lower pay.