It doesn't actually allow them to do anything they couldn't legally do before, but it makes the penalties a lot stiffer to discourage large companies from breaking the law.

The problem before was that even if you had a contract, the company would basically say "we have a lot more to spend on lawyers than you, good luck".

Now they have changed that calculation with this law, where if the big company loses it's a huge cost to them. So now their calculation is that it is cheaper to pay their bill than to fight you in court.

I don't know if it is good legislation. But it is groundbreaking legislation and important due to the rise of the Gig Economy. It introduces the idea that Gig Workers deserve legal protection, just like regular employees.