Newsom law takes effect, advancing the world's largest rideshare drivers' union

California’s app-based drivers now have a formal path to collective bargaining. A law that took effect on Jan. 1, 2026, gives about 800,000 Uber and Lyft drivers the right to negotiate their first union contract.

The Public Employment Relations Board confirmed that the California Gig Workers Union, or CGWU, had reached the support threshold needed to represent the state’s drivers. That makes it the world’s largest union of rideshare drivers, pending its final certification.

Governor Gavin Newsom celebrated the development, saying, “At a time when workers’ rights are under attack and families across the country are struggling to make ends meet because of the Trump administration, California is showing what it means to support working people.”

The law, AB 1340, was enacted in October 2025. It creates a specific labor-relations system for app-based drivers and requires the companies and unions certified by the board to bargain in good faith. Drivers can form or join organizations, elect representatives, take collective action for bargaining or mutual aid, and choose not to participate. The law does not require anyone to join a union.

The measure also takes account of Proposition 22, which classifies drivers as independent contractors when certain conditions are met. Companies initially opposed AB 1340, but changed their position in August 2025 after a legislative compromise that included SB 371. That law sharply reduced the required insurance coverage for uninsured drivers, from $1 million to $60,000 per person. Many drivers view AB 1340 as progress, although they acknowledge that changing pay and working conditions will remain difficult. UC Berkeley Labor Center researchers found in 2025 that drivers earned below the state minimum wage after expenses were deducted.

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At a time when workers’ rights are under attack and families across the country are struggling to make ends meet because of the Trump administration, California is showing what it means to support working people.