California measure brings rideshare drivers one step closer to unionizing
16 hours ago
- #Rideshare Industry
- #Labor Rights
- #California Legislation
- California governor Gavin Newsom signed a measure allowing over 800,000 ride-hailing drivers to unionize and negotiate for better wages and benefits.
- The law marks a major expansion of private-sector collective bargaining rights in California, following a compromise between labor unions and tech companies.
- California is the second state, after Massachusetts, to allow Uber and Lyft drivers to unionize as independent contractors.
- The law is part of a September agreement involving Newsom, lawmakers, SEIU, Uber, and Lyft, which also reduces insurance requirements for rideshare companies.
- Uber and Lyft claim high insurance costs in California make fares higher than in other states, with nearly one-third of fares going toward insurance.
- The law permits drivers to unionize while remaining independent contractors, addressing issues like deactivations, paid leave, and earnings.
- A separate insurance measure reduces coverage requirements for accidents caused by underinsured drivers.
- Critics argue the law lacks strong enforcement mechanisms, such as requiring companies to report pay data to the state.
- Uber and Lyft are still negotiating settlements with California cities over alleged wage withholding before Proposition 22 took effect.