AB-5's target were "ride-sharing" outfits like Uber and Lyft. The major reason was because Uber and Lyft were devastating large cities' taxi medallion monopoly and the companies that managed to procure a medallion. But because a law specifically targeting companies by name or a specific industry would be struck down as unconstitutional, AB-5 was written broadly, and gutted independent contractor status. Not only were Uber and Lyft hit, but so were any business whose activities utilize independent contractors for some specific project or event. But for Covid, AB-5 would have killed, for example, the San Jose Jazz Festival (its old name), in which headliner performers often hired local musicians for their back-up band.
So, yeah, this bill would kill a lot of jobs and quite a few small businesses.