California law AB 1340, signed by Newsom, benefits Uber and Lyft drivers

A new era for ride-share drivers in California has begun with the official signing of the AB 1340 law by Governor Gavin Newsom. This legislation creates a mechanism for drivers to organize, elect representatives, and engage in collective bargaining with companies such as Uber and Lyft.

The law, enacted in 2025, specifically provides a framework for drivers to exercise labor organization rights. The California Gig Workers Union has successfully gathered the required support, with the California Public Employment Relations Board (PERB) verifying that the organization has the backing of 30% of the state's active drivers. This threshold allows the union to move towards certification as the collective bargaining representative for Uber and Lyft drivers across the state.

Under the new law, the scope of negotiations will encompass driver earnings, benefits, and other working conditions. Notably, account deactivations are explicitly included as a mandatory subject for negotiation. While the law aims to improve conditions, it also stipulates that agreements cannot reduce existing legal guarantees, limit driver flexibility in choosing work opportunities, or alter their independent contractor status.