California, October 4, 2025
News Summary
California Governor Gavin Newsom has enacted AB 1340, allowing Uber and Lyft drivers to unionize and negotiate work conditions as independent contractors. Effective January 1, 2024, this legislation is a significant step for driver rights, enabling unions to represent drivers regarding pay and working conditions, despite existing challenges. The law addresses gaps in protections post-Proposition 22, providing a pathway for collective bargaining and demands from the drivers for better pay and benefits.
California Governor Gavin Newsom has signed into law a groundbreaking piece of legislation, AB 1340, which paves the way for Uber and Lyft drivers in the state to unionize and negotiate their working conditions despite being classified as independent contractors. The law is set to take effect on January 1, 2024.
Authored by Assemblymembers Buffy Wicks from Oakland and Marc Berman from Menlo Park, AB 1340 allows certified drivers’ unions to negotiate on behalf of drivers regarding pay, working conditions, and benefits. This includes protections against retaliation for engaging in union activities. The law represents a significant advancement in the drivers’ ongoing efforts to secure workplace rights, particularly following the passage of Proposition 22 in 2020, which defined drivers as independent contractors, limiting their employment rights.
Under federal law, independent contractors typically do not possess the right to collectively bargain, whereas employees do. As such, AB 1340 requires that app-based companies, along with certified unions, negotiate in good faith on matters concerning drivers, including pay, deactivation policies, and paid leave. The Public Employment Relations Board will facilitate union elections and ensure that bargaining agreements are adhered to.
Although Uber and Lyft initially opposed the legislation, they shifted their position after successfully negotiating reduced insurance coverage requirements through a separate bill, SB 371. However, critics of AB 1340 point to lingering challenges, including the difficulty of persuading tech giants to provide better pay and benefits for drivers.
To form a union, labor leaders must gather signatures from at least 10% of California’s approximately 800,000 ride-hailing drivers. Moreover, a formal recognition of the union requires a minimum of 30% approval from the drivers. Legislation advocates express that while this law provides drivers the ability to organize, it lacks provisions that guarantee the right to strike, an essential tool for strengthening union bargaining leverage.
The law’s introduction follows a California Court of Appeals ruling that permitted state lawmakers to authorize collective bargaining rights for drivers, despite the existing restrictions imposed by Proposition 22. Nevertheless, some experts remain skeptical about the long-term effectiveness of this legislation, noting that both Uber and Lyft continue to wield substantial control over drivers’ pay and working conditions.
Labor leaders now face not only the need for driver signatures but also various administrative hurdles before formal bargaining can commence. Some estimates suggest that the negotiations may not begin until 2026. Additionally, a separate wage theft lawsuit against Uber and Lyft is presently underway, which seeks to recover unpaid wages and advocate for improved pay practices in the future.
In conclusion, AB 1340, together with other related legislation, seeks to achieve a balance by lowering costs for riders while simultaneously giving app-based drivers in California a more robust voice within the gig economy. With this new model, California becomes the second state in the U.S., following Massachusetts, to provide such pathways for app-based drivers.
FAQ
What does California’s AB 1340 legislation allow for Uber and Lyft drivers?
AB 1340 creates a pathway for Uber and Lyft drivers in California to negotiate a first union contract despite being classified as independent contractors.
When does the legislation take effect?
The law will take effect on January 1, 2024.
Who authored the bill?
The legislation was authored by Assemblymembers Buffy Wicks (D-Oakland) and Marc Berman (D-Menlo Park).
What can certified drivers’ unions negotiate on behalf of drivers?
The legislation allows drivers’ unions to negotiate over pay, working conditions, and benefits, including protections against retaliation for union activities.
How many signatures are needed to form a union?
Labor leaders must secure signatures from at least 10% of the approximately 800,000 ride-hailing drivers to form a union.
What barriers do drivers still face despite the new legislation?
Significant barriers remain, including convincing Uber and Lyft to provide better pay and benefits, and the lack of a guaranteed right to strike.
What agency will oversee union elections?
The Public Employment Relations Board will oversee union elections and ensure compliance with bargaining agreements.
Key Features of AB 1340 Legislation
| Feature | Description |
|---|---|
| Unionization Rights | Allows ride-hailing drivers to form a union and negotiate contracts. |
| Effective Date | Takes effect on January 1, 2024. |
| Signature Requirement | Must secure signatures from at least 10% of drivers. |
| Bargaining Scope | Negotiation can include pay, conditions, and benefits. |
| Agency Oversight | Managed by the Public Employment Relations Board. |
| Post-Proposition 22 Context | Follows a ruling clearing the way for collective bargaining. |
Deeper Dive: News & Info About This Topic
- Politico: Newsom Signs Landmark Deal for Uber-Lyft Driver Unions
- Wikipedia: Collective Bargaining
- LAist: California Gives Uber-Lyft Drivers Collective Bargaining Rights
- Google Search: Uber Lyft drivers union
- The Guardian: California Ride-Hailing Drivers Union
- Encyclopedia Britannica: Labor Union
- New York Times: Uber, Lyft Drivers Set to Unionize in California
- Bloomberg Law: Uber’s California Union Deal Explained
- LA Times: Legislation Giving Ride-Hailing Drivers Right to Unionize
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