"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 signed Friday by Gov. Gavin Newsom. Supporters said the new law will open a path for the largest expansion of private sector collective bargaining rights in the state's history. The legislation is a significant compromise in the yearslong battle between labor unions and tech companies."
"The new law is part of an agreement made in September between Newsom, state lawmakers and the Service Employees International Union, along with rideshare companies Uber and Lyft. In exchange, Newsom also signed a measure supported by Uber and Lyft to significantly cut the companies' insurance requirements for accidents caused by underinsured drivers. Lyft CEO David Risher said in September that the new insurance rates are expected to save the company $200 million and could help reduce fares."
"Uber and Lyft fares in California are consistently higher than in other parts of the U.S. because of insurance requirements, the companies say. Uber has said that nearly one-third of every ride fare in the state goes toward paying for state-mandated insurance. In July of last year, the California Supreme Court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay,"
More than 800,000 ride‑hailing drivers in California will be eligible to join a union and bargain collectively for wages and benefits. The measure creates a major expansion of private‑sector collective bargaining rights and resolves a yearslong dispute between labor unions and rideshare companies. California becomes the second state where app‑based drivers can unionize as independent contractors after Massachusetts. The law followed an agreement involving Gov. Gavin Newsom, state lawmakers, the Service Employees International Union, Uber and Lyft. In exchange, state insurance requirements for underinsured-driver accidents were significantly reduced, with Lyft projecting $200 million in savings that could help lower fares.
Read at ABC7 San Francisco
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