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California lawmakers passed a landmark bill on Tuesday that threatens to reshape how companies like Uber and Lyft do business.

But shares of Lyft popped more than 5.8% on Wednesday morning, while Uber climbed more than 3.1% after California Gov. Gavin Newsom told the Wall Street Journal on Wednesday that he’s still engaged in talks with Uber, Lyft and other gig economy companies about possible negotiations around the bill. Newsom recently voiced his support for the bill.

The legislation, known as Assembly Bill 5 (AB5), would require gig economy workers to be reclassified as employees instead of contractors. The bill passed in a 29 to 11 vote in the State Senate and now moves on to the State Assembly, where if it passes, it will land on Newsom’s desk.

Additionally, the bill has received broad support from Democratic Presidential candidates including Senators Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.) and Kamala Harris (D-Calif.), as well as South Bend, Ind., Mayor Pete Buttigieg.

The bill has the potential to change the employment status of more than 1 million low-wage workers in California, not just gig workers at companies like Uber, Lyft, DoorDash, Postmates and Instacart. It will make it harder for gig economy companies to prove that their workers aren’t staff, while ensuring key benefits and protections, like minimum wage, insurance and sick days.

AB5 has attracted staunch opposition from gig economy companies, as it could upend their traditional business model of hiring inexpensive contractors. In an effort to push back against the bill, Uber and Lyft proposed establishing $21-an-hour minimum wage for drivers in California. The ride-hailing companies, as well as Doordash, have also pledged $90 million on a ballot initiative for the 2020 election that would exempt them from AB5.

Lyft spokesperson Adrian Durbin said the bill has the potential to hurt drivers who prefer a flexible work schedule.