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Newsom Signs Law Letting Uber and Lyft Drivers Unionize, Cuts Insurance Mandate

The compromise shifts a yearslong fight over gig work into a state-run bargaining process for contractors.

Overview

  • More than 800,000 ride-hail drivers in California can now pursue union representation and collective bargaining as independent contractors, making the state the second after Massachusetts to authorize such organizing.
  • Union drives will be overseen by the Public Employment Relations Board, with petitions allowed at 10% of active drivers and certification possible at 30%.
  • A companion measure reduces uninsured and underinsured motorist coverage requirements from $1 million to $60,000 per person and $300,000 per accident.
  • The new framework covers ride-hailing platforms such as Uber and Lyft but excludes delivery app drivers like those working for DoorDash.
  • Driver groups and experts caution that the law lacks mandated pay-data transparency, strong first-contract tools and clear strike protections due to legal constraints.