Newsom Inks Bill Giving 800,000 California Uber, Lyft Drivers Right to Unionize

More than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure recently signed by Gov. Gavin Newsom, Tran Nguyen reported for the Associated Press (AP).

The new law stems from an agreement reached in September between Newsom, state lawmakers, the Service Employees International Union, and rideshare companies Uber and Lyft. (Photo: Lyft)

Supporters said the new law paves the way for the largest expansion of private-sector collective bargaining rights in California’s history.

The legislation represents a major compromise in the years-long battle between labor unions and tech companies. California becomes the second state where Uber and Lyft drivers can unionize as independent contractors.

Massachusetts voters approved a similar ballot measure in November, while drivers in Illinois and Minnesota are pursuing comparable efforts.

Newsom announced the signing at an unrelated news conference at the University of California, Berkeley.

The new law will give drivers “dignity and a say about their future,” he said. It stems from an agreement reached in September between Newsom, state lawmakers, the Service Employees International Union, and rideshare companies Uber and Lyft.

As part of the deal, Newsom also signed a measure supported by the companies to significantly reduce insurance requirements for accidents involving underinsured drivers.

Lyft CEO David Risher said in September that the change is expected to save the company $200 million and could help lower fares.