Uber Technologies (UBER  ) and Lyft Inc (LYFT  ) have spent nearly $100 million in California to try and overturn the new AB5 state law, which would require them to classify their drivers as employees, which would provide PTO, health care, sick days and more, but would also end the gig-economy style the company and its drivers currently work within.

While the companies are certainly going to expensive lengths to avoid the reclassification of their drivers, they would be paying significantly more in the long run if they do treat their drivers as employees, according to Reuters.

Both Uber and Lyft could be paying more than $392 million in annual payroll taxes and workers compensation, even if they dramatically cut the numbers in their fleet of drivers. Reuters calculated that the companies would be paying around $7,700 for each full-time driver they had on staff. That number includes roughly $4,560 in annual employer-based California and federal payroll taxes, and a little over $3,000 in workers compensation insurance, which would be state mandated. Reuters didn't mention, however, how much money both companies current drivers make per year for either company, but both ride-sharing apps claimed they would need to raise the cost of rides to cover costs.

Uber and Lyft also said they might just leave California all together to avoid the cost of the new law, however many other states have said they plan to propose similar laws. This could change the way both companies do business in the US. As of right now, California represents a whopping 9% of all of Uber's global rides, food delivery, and ride bookings.

While Lyft is U.S. and Canada only and doesn't have a food delivery sector within its business, California still makes up around 16% of all rides for the company. The law passed by California sparked the state to sue both companies that do so much business within its boarders for not following their law, but of course both companies fired back, claiming their employees are properly classified as independent contractors, since their drivers set their won schedules.

There is still many court sessions and debates to settle the battle between Uber and Lyft versus the State of California. The turnout could effect the way gig economy works throughout the country. It's easy to see why all eyes are on this clash. However, its not just the company executives that claim they want their drivers stay independent. According to both companies, part of their drivers also want to stay as an independent contractor, since many of them work fewer than 25 hours a week or use Uber or Lyft to supplement income from other jobs. It would cost Uber and Lyft more to have part-time employees than contractors, which could again, reduce the numbers of their drivers.