Uber let’s drivers set their own rates in CA [0]. What is also interesting is that before Lyft/Uber many taxi drivers were contractors renting their cars for an hourly rate. With rates set by the government, it’s really not much different than “rideshare”, just less flexible for them and the customer.
One issue is the type of market transport is and the variability in demand. You can do just a few Lyft trips, or just 1 and then do something else. CA employment law does not allow “micro shifts” like that, you have to pay the employees for a few hours. With no government restriction the market works itself out, with a large number of people who work a bit at peak supplementing those who are more full time. I think the legislature took the lazy way out, they could of set up rules for minimum compensation, benefits, And worker protection without the rest of the employment baggage.