Overview

• AB 1340 would allow ride-hail drivers to form unions and bargain over pay and conditions while retaining independent contractor status, with an antitrust carve-out enabling collective action.
• A companion insurance bill backed by Uber and Lyft would reduce uninsured/underinsured motorist coverage from $1 million to $60,000 per individual and $300,000 per accident.
• Gov. Gavin Newsom, legislative leaders, SEIU California, Uber and Lyft announced support for the package, which still requires passage in both chambers and the governor’s signature.
• The agreement applies to rideshare drivers for platforms such as Uber and Lyft, and reporting indicates delivery drivers are not included.
• Estimates of how many workers would be eligible vary widely, with accounts ranging from roughly 80,000 to more than 800,000 drivers in California.