I am not sure how that article says it is a victory, there are plenty of ways around the law. Employers will require contractors to form their own limited companies, and in states like California, those costs will easily be US $1000 per year passed onto the contractors who normally didn't have costs. Some states have much lower costs but it sounds like a tax on the people.
If a person is working for a company, lets say Uber, then they would be forced to work dedicated shifts and take all calls. Whereas as a contractor, the drivers can turn on and off working as they see fit. If you think of bus drivers, they are pushed to make trips in certain time frames, and it becomes a factory line.
Contracting or gig society also gives a chance for workers to sub-contract their work and earn a cut, and grow their own business from the work. Being forced to be an employee for a company would further limit this. The cost will be passed onto the employee or the customer in the end.
Also, if there is an employee, companies would definitely limit overtime, thus limiting the amount someone could earn. If business is slow, send the employee home early (clock out - they don't get paid). Wages would be less stable and heavily taxed with state taxes, social security, medicare, etc. As a contractor, those people can write off many expenses whereas as an employee you cannot.