California lawmakers reach deal with Uber, Lyft that would allow drivers to unionize
August 29, 2025
California Gov. Gavin Newsom and state lawmakers have struck a deal with rideshare companies Uber and Lyft on a bill that would allow drivers to join a union and bargain collectively for better wages and benefits. The deal, announced Friday, comes along with a bill sponsored by Uber and Lyft that significantly reduce the companies’ insurance requirements for accidents caused by underinsured drivers. The agreement represents a significant compromise in the yearslong battle between labor unions and tech companies. The collective bargaining bill woud allow the more than 800,000 rideshare workers in California to join a union while still being classified as independent contractors.