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California Backs Deal Letting Uber and Lyft Drivers Unionize as Independent Contractors

The compromise ties union rights to a sharp cut in required insurance coverage.

Overview

  • Gov. Gavin Newsom, legislative leaders, unions, and Uber and Lyft announced support for a package advancing AB 1340 alongside SB 371.
  • AB 1340, authored by Assemblymembers Buffy Wicks and Marc Berman and sponsored by SEIU California, would allow drivers to bargain collectively while retaining contractor status.
  • The measure includes an antitrust carve‑out for contractor collective action and affirms drivers’ right to decline union membership or participation.
  • SB 371, carried by Sen. Christopher Cabaldon, would reduce required coverage from $1 million to $60,000 in uninsured motorist coverage per driver and $300,000 per accident.
  • Delivery-app couriers are excluded, and the package still needs to clear the Legislature as supporters argue lower insurance will reduce costs for riders.