Gov. Gavin Newsom on Friday signed into law a deal that will allow hundreds of thousands of rideshare drivers to unionize and bargain collectively while still being classified as independent contractors.
The legislation — a rare compromise between labor groups and Silicon Valley gig economy companies — grants collective bargaining rights to Uber and Lyft drivers, and follows years of political and legal battles over the job status of rideshare and delivery drivers.
The new law does not apply to other types of gig workers, including those who deliver food through apps like DoorDash.
Besides the collective bargaining deal, Newsom is also expected to sign a law backed by Uber and Lyft that would significantly reduce the companies’ insurance requirements.
Newsom, with his signing of the deal, drew a contrast with Trump’s posture towards workers and labor unions, with his administration banning collective bargaining at half a dozen federal agencies earlier this year.
“Donald Trump is holding the government hostage and stripping away worker protections. In California, we’re doing the opposite: proving government can deliver,” Newsom said in a statement. “That’s the difference...
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