Earlier this month, on October 3, 2025, California Governor Newson signed AB 1340, enacting the Transportation Network Company (TNC) Drivers Labor Relations Act (the Act).
Effective January 1, 2026, this statute grants certain gig drivers in California the right to unionize, bargain collectively and engage in concerted activities, without being classified as employees. The Public Employment Relations Board (PERB) is tasked to enforce the Act’s provisions, including resolving labor disputes, adjudicating unfair practice charges, and overseeing elections.
Who is Covered by AB 1340?
A TNC is a company operating in California that uses an app to connect drivers using personal vehicles with passengers. Drivers classified as employees under federal law or National Labor Relations Board (NLRB) rulings are excluded from AB 1340, under the theory that they already have unionization rights under federal law. The law only applies to non-employee independent drivers.
What Does AB 1340 Mandate?
The Act reflects California’s efforts to balance worker protections with the unique challenges of app-platform-based work, particularly after the contentious passage of Prop 22, which classified TNC drivers as independent contractors, as a matter of law.
Starting January 1, 2026, covered TNCs must submit to PERB every quarter a list of drivers who completed at least 20 rides in the past six months. The list must include each driver’s name, license number, known contact information, date joined,...
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