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CA’s New Rideshare Driver Unionization Law

October 07, 2025 (1 min read)

CA Enacts Bill Allowing Rideshare Drivers to Unionize

California Gov. Gavin Newsom (D) signed a bill (AB 1340) allowing drivers for ride-hailing companies to unionize and bargain collectively for better wages and benefits. The state is the second to allow such workers to unionize, with Massachusetts having done so via a ballot referendum (Question 3) in November. Rideshare drivers in Illinois and Minnesota are also pushing for that right.

California’s new law is part of an agreement between Newsom, state lawmakers, the Service Employees International Union, and rideshare companies Uber and Lyft. In exchange, Newsom also signed a measure (SB 371) significantly cutting rideshare companies’ insurance requirements for accidents caused by underinsured drivers. (ASSOCIATED PRESS, LEXISNEXIS STATE NET)

—Compiled by SNCJ Managing Editor KOREY CLARK

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