Sacramento, CA – October 12, 2025 | Ayuda California News
More than 800,000 Uber and Lyft drivers in California will now be able to join a union and negotiate for better wages and working conditions, thanks to a new law signed Friday by Governor Gavin Newsom.
The measure marks a new chapter in the long legal and political battle over the rights of gig economy workers.
A Decade-Long Battle Between Drivers and Tech Giants
The debate began years ago with the passage of Assembly Bill 5 (AB 5) in 2019, authored by then-Assemblywoman Lorena González, which sought to reclassify app-based drivers as employees and grant them labor protections such as:
- Overtime pay
- Unemployment insurance
- Paid sick leave
- Protection under California Labor Code §2750.3
However, Uber, Lyft, and DoorDash countered with Proposition 22 (2020), a voter-approved initiative that reversed AB 5 and allowed drivers to remain independent contractors.
Since then, app drivers have lacked access to standard employee benefits, but California courts have kept the issue alive. In 2024, the California Supreme Court upheld Proposition 22, cementing the independent contractor model.
The New Law: A Middle Ground Between Unions and the Gig Economy
For the first time, the law signed by Newsom creates a legal path for drivers to form recognized unions without being classified as employees.
“This law gives drivers dignity and a voice in their future,”
Said Newsom during the announcement at the University of California, Berkeley.
The agreement resulted from months of negotiations between the governor, state lawmakers, the Service Employees International Union (SEIU), and ride-hailing companies Uber and Lyft.
Key Changes Under the New Law
- Right to unionize and bargain collectively
- Companies must negotiate “in good faith” with union representatives
- No change in employment status: drivers remain independent contractors under Proposition 22
- Reduced insurance requirements: a separate bill signed by Newsom cuts minimum coverage from $1 million to $60,000 per person and $300,000 per accident — a measure supported by Uber and Lyft
According to the companies, the changes will reduce operating costs and may lower fares for riders.
Mixed Reactions: Progress or Concession?
The law represents historic progress for many drivers, particularly Latino and immigrant workers who depend on these platforms.
“For years, we worked without a voice or protection. Now at least we can organize and demand respect.”
said Ana Barragán, a Los Angeles driver.
But others are less optimistic. The group Rideshare Drivers United, which has over 20,000 members, called the law “an insufficient step,” arguing it fails to require Uber or Lyft to disclose real driver earnings.
“We need state oversight of wages and meaningful progress.”
Said Nicole Moore, the organization’s president.
What Comes Next for California Drivers
- The Department of Industrial Relations (DIR) must issue regulations on forming and recognizing unions.
- The law does not apply to delivery workers for platforms like DoorDash or Uber Eats.
- Drivers will be allowed to negotiate base rates, commissions, and working conditions.
- Companies are legally required to bargain in good faith with driver unions.
Ayuda California: Legal Guidance for the Working Community
At Ayuda California, we recognize the tireless efforts of thousands of workers — many of them Latino — who power the gig economy.
We understand how confusing these legal changes can be, which is why we offer free and confidential guidance on your labor and compensation rights as a driver or independent contractor.
📞 Free consultation in Spanish — regardless of immigration status.
Our services include:
✅ Claims for accidents and reduced insurance coverage
✅ Protection of your rights under
✅ Support for unfair deactivation or suspension cases by app companies
🔹 Ayuda California: Your legal ally in the new era of digital work.
