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California Backs Deal Letting Uber and Lyft Drivers Unionize as Insurance Rules Are Eased

Lawmakers and companies now support a two-bill compromise that still needs legislative approval before any organizing can begin.

Overview

  • Assembly Bill 1340 would allow app-based ride-hail drivers to form unions and bargain over pay and working conditions while remaining independent contractors.
  • To enable collective bargaining by contractors, the proposal includes exemptions from state and federal antitrust laws that would otherwise bar such coordination.
  • Senate Bill 371 would lower uninsured and underinsured motorist coverage requirements from $1 million to $60,000 per person and $300,000 per accident, a change Uber and Lyft say will reduce costs and fares.
  • Uber and Lyft, which initially opposed AB 1340, now endorse the package alongside Gov. Gavin Newsom, legislative leaders and SEIU California.
  • The measures apply to rideshare drivers only—not food and grocery delivery couriers—and would cover hundreds of thousands of workers statewide if enacted.