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California Sends Uber-Lyft Union Bill to Newsom in Deal That Cuts Insurance Requirements

The package links union rights to insurance rollbacks that opponents say will shift risk to the public.

Overview

  • Lawmakers approved AB 1340 and sent it to Gov. Gavin Newsom, who had already endorsed the agreement.
  • The union measure is tied to SB 371, which would reduce uninsured and underinsured coverage to $60,000 per person and $300,000 per incident.
  • Uber and Lyft dropped formal opposition to unionization under the compromise, and drivers would remain classified as independent contractors.
  • Late amendments set experience thresholds that make it harder for grassroots driver groups to qualify, increasing the likelihood of SEIU representing drivers.
  • A lawsuit by Speaker Robert Rivas’s former press secretary alleges a quid pro quo with SEIU, allegations the union and Assembly officials reject, and the bills add data-disclosure requirements on rides and earnings.