Overview

• Gov. Gavin Newsom on Oct. 3 signed AB 1340, giving more than 800,000 Uber and Lyft drivers a state-authorized path to union representation while preserving independent-contractor status.
• The law requires companies to bargain in good faith and places enforcement with the Public Employment Relations Board, with the process reported to begin Jan. 1.
• Driver organizations must gather signatures from 10% of active drivers to access contact lists and 30% to petition for certification; elections are triggered if multiple groups qualify.
• A companion measure, SB 371, cuts uninsured and underinsured motorist coverage from $1 million to $60,000 per person and $300,000 per accident, which Lyft says could save it about $200 million.
• The law excludes delivery-app workers and faces criticism over absent pay-data reporting and uncertain strike protections, as separate wage-theft lawsuits and settlement talks with the state and major cities continue.