Drivers for ride-hailing apps like Uber and Lyft will soon have the right to unionize in California as independent contractors. This change follows a bill signed on Friday by Governor Gavin Newsom. The new law is part of a larger agreement between state lawmakers, labor unions, and the ride-hailing companies themselves.
This agreement also led to the passage of separate bills that support lower insurance requirements for Uber and Lyft. When the deal was first announced, Governor Newsom described it as an historic agreement between workers and business that only California could deliver.
Reports indicate that more than 800,000 drivers will gain the right to join a union and collectively bargain for better pay and benefits. A representative from Uber stated that the two bills represent a compromise that lowers costs for riders while creating stronger voices for drivers.
This development in California follows a similar decision in Massachusetts, where voters passed a ballot measure giving ride-hailing drivers unionization rights last fall.