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Newsom signs bill giving 800,000 Uber and Lyft drivers in California the right to unionize

The law grants over 800,000 drivers collective bargaining rights while keeping independent contractor status and lowers insurance requirements, aiming to reduce ride costs, officials said.

  • More than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure signed by Gov. Gavin Newsom.
  • The legislation is a significant compromise in the yearslong battle between labor unions and tech companies, with California being the second state where Uber and Lyft drivers can unionize as independent contractors.
  • In exchange for allowing drivers to unionize, Newsom is expected to sign a measure supported by Uber and Lyft to significantly cut the companies' insurance requirements for accidents caused by underinsured drivers.
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The Business Journal broke the news in on Friday, October 3, 2025.
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