Overview

• Gov. Gavin Newsom signed AB 1340, giving more than 800,000 Uber and Lyft drivers the right to unionize and bargain as independent contractors, making California the second state to permit this.
• The law requires ride-hailing companies to bargain in good faith with drivers’ unions, and it does not cover delivery-app workers such as those on DoorDash.
• As part of the deal, a companion measure expected to be signed would cut uninsured and underinsured motorist coverage minimums to $60,000 per person and $300,000 per accident.
• Lyft CEO David Risher has said the reduced insurance requirements are expected to save the company about $200 million and could help lower fares.
• Driver advocates including Rideshare Drivers United say the law lacks strong enforcement and urge mandatory reporting of pay data to the state.