Governor Gavin Newsom, alongside Senate President Pro Tem Mike McGuire and Assembly Speaker Robert Rivas, has announced support for new legislation that aims to provide unionization rights for more than 800,000 rideshare workers in California. The legislative package includes AB 1340 (Wicks, Berman), sponsored by SEIU California, and SB 371 (Cabaldon), sponsored by Uber and Lyft.
“This is a historic agreement between workers and business that only California could deliver. Labor and industry sat down together, worked through their differences, and found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians. It’s proof that California can do big things, tackle tough issues, and improve people’s lives,” said Governor Gavin Newsom.
Senate President Pro Tempore Mike McGuire highlighted the significance of the deal: “For almost a decade, thousands of drivers have fought for a better life. A way forward to the middle class. This agreement represents one of the largest in American history — 800,000 Californians who work behind the wheel will now have a path to higher wages, health benefits, and workplace rights. This a big damn deal, uplifting workers and the Golden State’s economy.”
Speaker Robert Rivas added: “This is momentous. Hundreds of thousands of California gig workers are headed toward better pay, and Uber and Lyft rides will be more affordable for millions of residents. While Trump is stripping workers of bargaining rights and rolling-back protections, California is fighting for lower prices and empowering working families. What a way to celebrate Labor Day weekend.”
Assembly Bill 1340 creates a legal structure called the Transportation Network Company (TNC) Drivers Labor Relations Act. This framework gives over 800,000 rideshare drivers in California an option to join unions to negotiate wages, benefits, and other protections with companies like Uber and Lyft.
Senate Bill 371 seeks to reduce insurance costs related to rideshare services by removing the current requirement that drivers carry $1 million in coverage for accidents caused by uninsured or under-insured motorists—a cost typically passed on to riders. Under this bill’s terms, coverage would be set at $60,000 per individual or $300,000 per accident.
Nick Johnson from Lyft stated: “This deal is a major victory for both riders and drivers in California. By bringing runaway insurance costs under control, we can help maintain the affordability of rideshare without sacrificing proper protections… And more rides mean more earnings for drivers to help them achieve their goals. We’re proud to support legislation that allows us to better serve and connect Californians across the state.”
Ramona Prieto from Uber commented: “Sacramento has come together around the need to make rideshare more affordable in California… Together [the bills] represent a compromise that lowers costs for riders while creating stronger voices for drivers—demonstrating how industry, labor, and lawmakers can work together to deliver real solutions that reflect how people live, work, and move today.”
Tia Orr from SEIU California said: “Gig workers have been fighting… because for too long… you do all the work and take all the risks… That stops with AB 1340… While Trump tears down unions…California is showing that building a worker-first economy is possible only when we put workers in the drivers’ seat.”
