Uber and Lyft drivers in California are in a position to unionize beneath new regulation

California governor Gavin Newsom signed laws on Friday that grants rideshare drivers within the state the precise to unionize. It is the second state to grant organizing rights to rideshare drivers, who’re impartial contractors, following the passage of a similar law in Massachusetts in 2024. There are over 800,000 rideshare drivers in California, and the invoice that was simply signed into regulation “establishes a transparent authorized framework for union certification, bargaining processes and enforcement,” based on a press launch from the workplace of Assemblymember Buffy Wicks.

This implies drivers working for corporations like Uber and Lyft will have the ability to collectively discount for higher pay, advantages and dealing circumstances. Below the terms of the regulation, driver organizations will have the ability to apply for union recognition beginning in Might 2026 so long as they’ve assist from not less than 10 p.c of energetic rideshare drivers within the state. The group would then want assist from not less than 30 p.c of energetic drivers to start bargaining on their behalf. 

As a part of a deal made in September, Newsom additionally signed a measure that reduces the insurance coverage protection necessities for Uber and Lyft within the case of accidents brought on by uninsured drivers, Associated Press reviews.