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The mandate applies to roughly a quarter of the U.S. workforce and affects companies that do business with the federal government.
California's Proposition 22 requires the companies to offer some modest new perks, but protects them from having to provide much costlier benefits.
Pay equity, sexual harassment, paid time off and rights for LGBT workers will be among the key issues to watch.
The ruling could present broader implications for the gig economy and other industries that rely on contractors and delivery drivers.
A woman sued her former-employer for discrimination after she was fired over a Facebook post that disparaged a transgender individual.
State and local governments in 2018 took more steps to boost pay equality, posing more compliance headaches for national companies.
Microsoft, Google and JPMorgan Chase were among 56 companies pushing back against attempts by the Trump administration to reduce protections for transgender people.
The two states, often leaders on new initiatives in the employment law space, have the most comprehensive sexual harassment policies.
The NLRB is beginning rulemaking on how to define relationships between companies, franchises, contractors and others.
A gender-pay case that firms have called a "wake-up call" for employers is expected soon to arrive at the U.S. Supreme Court.