News Summary

California Governor Gavin Newsom has signed a groundbreaking bill that grants Uber and Lyft drivers the right to unionize. This legislation, known as Assembly Bill 1340, establishes a legal framework for union certification and collective bargaining, aiming to improve drivers’ pay, benefits, and working conditions. With over 800,000 rideshare drivers in the state, the bill could serve as a model for other states. Starting in May 2026, driver organizations can apply for union recognition with the support of at least 10% of active drivers, and they will need at least 30% support to begin bargaining. This compromise between labor groups and gig economy companies like Uber and Lyft represents a significant shift in the gig economy landscape.