Drivers for ride-hailing platforms Uber and Lyft will soon have the legal right to unionize in California, following a new bill signed into law on Friday by Governor Gavin Newsom.
The legislation marks a historic agreement between lawmakers, labor unions, and the ride-hailing giants. It grants more than 800,000 app-based drivers the right to join unions and collectively bargain for better wages and working conditions, all while maintaining their independent contractor status.
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The new law is part of a larger compromise package that also includes lower insurance requirements for Uber and Lyft, designed to help keep ride costs manageable for consumers. When the agreement was first announced in August, Newsom hailed it as “an historic agreement between workers and business that only California could deliver.”
Ramona Prieto, Uber’s head of public policy for California, told the Associated Press that the bills “represent a compromise that lowers costs for riders while creating stronger voices for drivers.”
The development follows similar efforts in other states. Massachusetts voters approved a ballot measure in 2024 that also granted unionization rights to ride-hailing drivers, signaling growing nationwide momentum for gig workers seeking collective bargaining power.
California’s move could set a new precedent for other states, and reshape the future of the gig economy in the U.S.
