California Gov. Newsom Signs Landmark Bill Granting Union Rights to Uber, Lyft Drivers
California Gov. Gavin Newsom has signed a landmark bill granting union rights to Uber and Lyft drivers, marking a significant shift in the gig worker landscape. The new law, authored by Assemblymember Alex Lee, allows drivers to unionize while maintaining their independent contractor status. However, it excludes other gig workers like food delivery drivers.
Under the new legislation, drivers' eligibility to vote in union elections is based on a formula determining who is 'active' in the prior six months, measured by rides completed. To initiate unionization, signatures from at least 10% of active drivers are required, differing from federal law.
In a rare compromise, Newsom also signed an insurance bill backed by Uber and Lyft, reducing the companies' insurance requirements during passenger trips. This deal, reached between Newsom, labor groups, and Silicon Valley gig economy companies, allows hundreds of thousands of rideshare drivers to unionize while keeping their independent contractor status. This reverses the initial barrier set by Proposition 22, passed in 2020.
The new laws, signed by Gov. Newsom, pave the way for collective bargaining rights for Uber and Lyft drivers, following years of political and legal battles over their job status. The deal balances the interests of workers, companies, and the state, offering a potential model for future gig worker regulations.
