California Rideshare Drivers Get Green Light to Unionize Under New Law

California Rideshare Drivers Gain Unionization Rights Under New Law SACRAMENTO, Calif. - California Governor Gavin Newsom signed legislation on Friday that grants rideshare drivers in the state the right to unionize, giving them the ability to collectively bargain for better pay, benefits, and working conditions. The law, which takes effect in May 2026, establishes a clear legal framework for union certification, bargaining processes, and enforcement. It is the second state to grant organizing rights to rideshare drivers, following Massachusetts' passage of a similar law in 2024. According to Assemblymember Buffy Wicks, who sponsored the bill, "This legislation provides a critical step forward for workers who have been denied basic protections and benefits by companies like Uber and Lyft." Wicks added that the law will allow driver organizations to apply for union recognition as long as they have support from at least 10 percent of active rideshare drivers in the state. To begin bargaining, however, these organizations would need support from at least 30 percent of active drivers. The new law also reduces insurance coverage requirements for Uber and Lyft, a measure that was part of a deal made with Newsom in September. Background on the issue shows that rideshare companies have long classified their drivers as independent contractors, rather than employees, which has led to disputes over benefits and working conditions. Critics argue that this classification denies drivers basic protections and benefits, while supporters say it allows for greater flexibility and autonomy. Supporters of the law, including labor unions and driver advocacy groups, hailed the legislation as a major victory for workers' rights. "This is a huge step forward for rideshare drivers in California," said Maria Sánchez, a spokesperson for the California Labor Federation. "For too long, these workers have been denied basic protections and benefits by companies that prioritize profits over people." Opponents of the law, including Uber and Lyft, expressed concerns about the potential impact on their businesses. "We are disappointed that the governor signed this bill into law," said an Uber spokesperson. "This legislation will increase costs for drivers and passengers alike, and could ultimately lead to less choice and flexibility for consumers." The new law takes effect in May 2026, when driver organizations can begin applying for union recognition. As the policy is implemented, it remains to be seen how rideshare companies will adapt to the changing landscape. With over 800,000 rideshare drivers in California, the impact of this legislation could be significant. As one driver noted, "This law gives us a voice and a chance to fight for better working conditions and benefits. We're not just independent contractors; we're workers who deserve respect and fair treatment." *Reporting by Engadget.*