US EditionCalifornia Lawmakers Reach Deal with Uber, Lyft that Would Allow Drivers to Unionize
The legislation permits rideshare drivers to unionize while remaining contractors and reduces insurance mandates from $1 million to $60,000 per driver, easing costs for companies and riders.
- On Friday, Governor Gavin Newsom and state lawmakers announced a deal with Uber and Lyft allowing drivers to unionize while keeping contractor status, pairing collective bargaining with an insurance-reduction bill.
- The deal follows a yearslong tussle sparked when Proposition 22 passed by nearly 6 in 10 voters in 2020 and the 2019 California employment law rewrite clarified independent-contractor rules.
- The compromise lowers insurance mandates, cutting uninsured motorist coverage from $1 million to $60,000 per individual and $300,000 per accident, while AB 1340 enables more than 800,000 rideshare drivers to unionize.
- Uber and Lyft now back the deal after earlier opposition, company officials said it balances lower rider costs with stronger driver voices, while Newsom called it a "historic" agreement empowering drivers and keeping rides affordable.
- If passed, California would join Massachusetts as the second state allowing drivers to unionize, with supporters saying the package sets a model for organizing without changing independent-contractor status.
82 Articles
82 Articles
Gavin Newsom reaches deal with Uber and Lyft that's called the 'largest expansion of private sector collective bargaining in California history'
California Gov. Gavin Newsom and state lawmakers have struck a deal with rideshare companies Uber and Lyft to allow drivers to join a union and bargain collectively for better wages and benefits. The agreement includes a bill for collective bargaining backed by the Service Employees International Union along with a measure sponsored by Uber and Lyft that would significantly reduce the companies’ insurance requirements for accidents caused by und…
Associated Press News
California lawmakers reach deal with Uber, Lyft that would allow drivers to unionize
California Gov. Gavin Newsom and state lawmakers have struck a deal with rideshare companies Uber and Lyft on a bill that would allow drivers to join a union and bargain collectively for better wages and benefits.
California Uber and Lyft Drivers are Unionizing, and Uber and Lyft are Actually Going to Let Them
In a surprising deal that was somewhat brokered by Gavin Newsom, Uber and Lyft are going to let their 800,000 California rideshare drivers unionize and get collective bargaining rights, though drivers can still refuse to join the union. According to the union group SEIU California, there are now 800,000 rideshare drivers in the state, and that’s one out every 24 California workers who are at least sometimes gig drivers. And Uber and Lyft have tr…
Daily Bulletin
California lawmakers, Lyft and Uber craft deal to allow drivers to unionize
In a deal with Uber and Lyft, Gov. Gavin Newsom and several state lawmakers are backing legislation that would allow rideshare drivers to unionize while lowering the insurance threshold for drivers. The agreement, if approved, would allow hundreds of thousands of rideshare drivers to form unions and bargain collectively while still being classified as gig workers, according to supporters ahead of a Friday vote on the legislation in Sacramento. T…
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