California, October 9, 2025
News Summary
California’s rideshare drivers are set to negotiate with Uber and Lyft over wage settlements after years of allegations concerning wage theft. With talks scheduled soon, drivers are seeking reimbursement for lost wages and improved working conditions. This follows lawsuits filed nearly five years ago that accused the companies of misclassifying drivers and withholding benefits. Amid these negotiations, new legislation allows drivers to unionize, providing a pathway for collective bargaining while maintaining independent contractor status.
California
Negotiations are set to begin between Uber and Lyft and their drivers, who are seeking a wage settlement after years of allegations regarding wage theft. The talks with Lyft are scheduled for April 8, while negotiations with the state will commence on Monday and continue for two weeks. Over 250,000 drivers who worked with the companies between 2016 and 2020 could be eligible for a settlement, according to Rideshare Drivers United, a California-based organization.
The ongoing disputes started nearly five years ago when public officials filed lawsuits against Uber and Lyft. These lawsuits allege that the companies withheld billions of dollars in wages and compensation from drivers, misclassifying them as independent contractors rather than employees. A mediation session with Uber is set for March 31, as part of the joint case consolidated in the San Francisco Superior Court, which combines various legal actions from drivers and public officials.
Drivers are pushing for a settlement that would reimburse them for lost wages and improve working conditions, such as protections against unjust deactivation from the apps. In 2020, around 5,000 drivers filed claims with the California labor commissioner’s office, asserting they were denied overtime pay, mileage reimbursement, and other employee benefits.
The lawsuits being discussed cover the period before California’s Proposition 22 was enacted. This proposition allowed Uber, Lyft, and other gig companies to classify drivers as independent contractors, a move that drivers argue has not resulted in better wages or treatment. Proposition 22 was backed by over $200 million from gig companies, with claims that it would guarantee better conditions for independent workers.
Concerns about drivers’ earnings have also been raised. Ibrahim Diallo, an Uber driver, notes that over half of drivers work long hours to make ends meet, and many have seen their wages decrease over time. Studies conducted by the UC Berkeley Labor Center indicate that, after accounting for expenses and wait times, ride-hail drivers earn an average of $5.97 per hour without tips and $7.63 per hour including tips. Uber, however, claims that drivers earn at least 120% of the minimum wage during active hours and has invested over $1 billion in benefits such as healthcare and accident insurance for drivers.
Veena Dubal, a law professor critical of Uber and Lyft, has stated that drivers deserve the back pay owed to them. However, she expresses skepticism that the companies will concede significant future protections, given their investment in Proposition 22. In response to driver demands, California Governor Gavin Newsom recently signed legislation allowing Uber and Lyft drivers to unionize as independent contractors. This law is designed as a compromise between labor unions and gig economy companies and permits drivers to collectively bargain while maintaining their independent contractor status. Interestingly, this legislation does not extend to other gig workers such as food delivery drivers.
Under the new union law, drivers can begin the unionizing process by collecting signatures from 10% of active drivers. This would enable them to attain representation and potentially hold union elections if multiple groups seek to represent drivers. Additionally, the law mandates Uber and Lyft to provide regular data on active drivers to the state labor board. Supporters of this reform argue that it gives drivers more authority in negotiating their compensation and work conditions, while critics express concerns about insufficient protections regarding data transparency on driver pay and the potential limitations on collective actions by drivers.
Throughout California, rideshare drivers have staged rallies advocating for fair compensation and the protection of their rights against wage theft allegations.
FAQ
What are the negotiations between Uber, Lyft, and drivers about?
Negotiations are focused on seeking a wage settlement for over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020, as well as improvements in working conditions.
What have drivers alleged against Uber and Lyft?
Drivers allege that Uber and Lyft withheld billions of dollars in wages, misclassifying them as independent contractors and denying them employee benefits like overtime pay and mileage reimbursement.
What is California’s Proposition 22?
Proposition 22 permitted Uber, Lyft, and other gig companies to classify drivers as independent contractors, and it was backed by over $200 million from gig companies with claims it would ensure better wages and treatment for independent workers.
What changes has California recently made regarding rideshare drivers?
California legalized the ability for Uber and Lyft drivers to unionize as independent contractors, allowing them to collectively bargain while remaining outside the traditional employee framework.
Key Features of the Rideshare Negotiations
| Feature | Details |
|---|---|
| Negotiation Dates | Uber: March 31, Lyft: April 8 |
| Eligible Drivers | Over 250,000 drivers who worked between 2016 and 2020 |
| Lawsuit Origin | Filed nearly five years ago, alleging wage theft |
| Claims Filed | 5,000 claims of denied employee benefits in 2020 |
| Proposition 22 | Enacted to permit classification as independent contractors |
| Unionization Law | Allows drivers to unionize while remaining independent contractors |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New Law Signed by Newsom Allows Ride-Share Drivers to Unionize
- CNN: California Uber, Lyft Union Bill
- FOX LA: Video on Rideshare Developments
- The Guardian: Uber & Lyft Drivers Wage Theft Settlement
- ABC7: Rideshare Drivers Rally in Downtown LA
- Wikipedia: Ridesharing
- Google Search: Uber Lyft Wage Theft
- Google Scholar: Rideshare Drivers Unionization
- Encyclopedia Britannica: Rideshare
- Google News: California Rideshare Drivers
Author: STAFF HERE LOS ANGELES WRITER
LOS ANGELES STAFF WRITER The LOS ANGELES STAFF WRITER represents the experienced team at HERELosAngeles.com, your go-to source for actionable local news and information in Los Angeles, Los Angeles County, and beyond, specializing in "news you can use" with coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise from years of dedicated reporting and strong community input, including local press releases and business updates, while delivering top reporting on high-value events like the Academy Awards, LA Auto Show, and Los Angeles Marathon, extending coverage to key organizations such as the Los Angeles Area Chamber of Commerce and the Los Angeles Tourism & Convention Board, plus leading businesses in entertainment and technology like Warner Bros. and SpaceX, and as part of the broader HERE network including HEREAnaheim.com , HERECostaMesa.com , HEREHuntingtonBeach.com , and HERESantaAna.com , providing comprehensive, credible insights into Southern California's dynamic landscape. HERE Anaheim HERE Beverly Hills HERE Coronado HERE Costa Mesa HERE Hollywood HERE Huntington Beach HERE Long Beach HERE Los Angeles HERE Mission Viejo HERE San Diego HERE Santa Ana
