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California's Assembly Bill 1340, known as the Transportation Network Company Drivers Labor Relations Act, is making waves as it progresses through the state Legislature. If passed, it would allow Uber and Lyft drivers in California to unionize, making the state the second after Massachusetts to grant ride-hailing drivers collective bargaining rights.
The bill, introduced on April 10, 2025, aims to address long-standing issues faced by drivers, including low wages and lack of benefits. According to CalMatters, drivers have been advocating for improved working conditions through various channels, including protests and legal battles. Hector Lopez, a Lyft driver involved with Gig Workers Rising, stated, "We can benefit a lot from being unionized. It might be the only way to get fair wages."
However, the ride-hailing industry warns that unionization could lead to higher ride prices and reduced availability. Uber and Lyft have opposed the bill, arguing it contradicts Proposition 22, which classifies gig workers as independent contractors. An appeals court had previously struck down a provision of Prop. 22 that limited collective bargaining rights.
The bill's passage would require ride-hailing companies to negotiate with a certified union over terms such as compensation, hours, and safety practices. It would also mandate companies to submit driver information to the state's Public Employment Relations Board, a move criticized by the industry as a privacy violation.
Despite opposition, the bill has gained support from driver advocacy groups and is set for a hearing before the Senate Appropriations Committee on August 18. Rideshare Drivers United has proposed policy recommendations to strengthen the bill, emphasizing the need for enforceable standards and protections against retaliation.
As Hanson Bridgett LLP notes, the bill's success could face challenges, including potential conflicts with the National Labor Relations Act. However, it represents a significant step toward improving conditions for California's ride-hailing drivers.