What does the new legislation propose, and how does it affect California gig worker misclassification debates under AB5 and Prop 22?

California's Assembly Bill (AB) 1340 and Senate Bill (SB) 371 together are a monumental legislative package that strengthens the labor protections of gig workers. The bills operate within the framework established by Proposition 22, which, passed in 2020, classifies rideshare drivers as independent contractors. This designation precludes them from protections granted to employees, most notably, the right to organize. Supported by both labor unions and rideshare companies, the new legislation aims to grant drivers new protections while largely preserving their independent contractor status. Specifically, AB 1340 allows drivers for companies like Uber and Lyft to unionize and collectively bargain over pay and working conditions. This expanded right goes beyond the limited benefits guaranteed under Proposition 22 and was made possible by a 2022 appellate court ruling that invalidated a prohibitive collective bargaining clause in Proposition 22. The companion bill, SB 371, is a concession to rideshare companies, reducing their required uninsured and underinsured motorist insurance coverage. This package represents a new phase in the debate by moving away from the rigid "employee vs. independent contractor" showdown that defined AB 5 and Proposition 22 and instead creates a hybrid status within the independent contractor framework that can secure...

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