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Wednesday, September 17, 2025

Fast-Track to Union Representation? California, Uber, Lyft and SEIU Unite Behind Driver-Union Bill - Labor Relations Update

After years of battles within the state over ride-share driver classification issues, California is redrawing the map of gig-economy labor relations – a measure that would, for the first time in the state, give unions a path to organize rideshare drivers. California Governor Gavin Newsom is framing the bill as the result of a compromise that includes long-sought insurance reforms aimed at lowering fares and making rides more affordable for Californians. It’s worth noting that as recently as 2020, 87% of drivers reported they supported Proposition 22, which classified them as independent contractors outside the reach of the unions in California (read more of our coverage of the Proposition 22 ballot measure here, here, here, and here).

On August 29, 2025, Newsom, announced that the California Service Employees International Union (“SEIU”), Uber Technologies Inc, and Lyft Inc. now jointly support Assembly Bill 1340 — a measure that would, for the first time in the state, give California’s rideshare drivers a statewide path to unionize, while remaining independent contractors. Governor Newsom also threw his weight behind Senate Bill 371, which would lower the minimum uninsured/under-insured motorist coverage Transportation Network Company (TNC) drivers must carry, trimming a costly compliance burden.

AB 1340: Potential Pathway for Statewide Union Representation of Ride-Share Drivers

Under AB 1340, every TNC operating in California must turn over to the Public Employment...



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