Uber and Lyft drivers could unionize under new California bill (2025)

A handful of California Democratic lawmakers announced legislation Tuesday to allow drivers for rideshare companies like Uber and Lyft — who are classified as independent contractors — to join a union.

Assembly Bill 1340, authored by Assemblymembers Buffy Wicks, D-Oakland, and Marc Berman, D-Menlo Park, is the first bill to propose broad changes to the ride-hailing business since the state Supreme Court upheld industry-backed Proposition 22 last year. “We stand for the right of every worker to truly have a voice,” Wicks said at a Tuesday rally of rideshare drivers near the state Capitol, who gathered holding signs that read “Gig Drivers Union Now.”

“We stand for financial stability for our working class families so that folks can have food on their table, a roof over their head, and maybe even a little extra money to take those kids on vacation during spring break,” Wicks said.

Food delivery companies would not be included in the bill. According to draft language of the latest version, many details still need to be worked out.

Wicks said she has had “very preliminary conversations” with the companies but said “our doors are wide open” for negotiations.

Voter-approved Prop. 22 gave app-based transportation and delivery companies an exemption from a state law that required many independent contractors to be reclassified as employees and given employment benefits.

Uber, Lyft, DoorDash and other app-based companies poured more than $200 million into Prop. 22, which kept drivers as gig workers while extending more benefits, such as healthcare stipends, some mileage reimbursement and pay above minimum wage when a passenger is in the vehicle.

The law faced legal challenges after it was approved in 2020 but was mostly upheld by the California Supreme Court. An earlier ruling struck down a requirement that lawmakers reach a 7/8 majority vote for any law allowing gig workers to unionize, paving the way for Wicks’ bill.

“App-based drivers prefer the freedom and flexibility of independent work and overwhelmingly support Prop. 22,” said Molly Weedn, a spokesperson for Protect App-Based Drivers & Services, a group that backed the initiative. “We will analyze this new legislation, but our coalition will oppose any measures that threaten independent app-based work or make app-based services less affordable and less accessible for consumers.”

What do Uber, Lyft and drivers say?

Statements from Uber and Lyft signal the companies intend to fight the legislation.

“Californians are already feeling the squeeze — and this proposal would drive up rideshare costs even more while threatening the flexible jobs thousands depend on,” an Uber spokesperson said.

A Lyft spokesperson said Prop. 22 is drivers’ “preferred way to structure benefits and protections.”

Some drivers hope the bill, if it becomes law, would help them bargain for better pay, benefits and working conditions.

“It’s about getting companies to treat us as human beings, finally, and having the right to join together to demand to be treated fairly,” said Nick Calabar Jr., a Stockton resident who has driven for Uber and Lyft for nine years.

When he first started driving, Calabar said the pay was good and there were ample opportunities for bonuses. But the payouts have been getting smaller while drivers shoulder the costs of car insurance, maintenance and fuel.

Just last week, Calabar said a passenger paid $60 for a ride from south Sacramento to the airport, while Lyft paid him $14 for the ride.

“How is that fair? I do all the work, pay for insurance, the cost of my car payment each month, cost of charging my vehicle, and not to mention taking all the risks,” he said. “Like thousands of rideshare drivers, working for Uber or Lyft isn’t just a side gig, it’s our job.”

Labor organizers estimate roughly 600,000 ride-hailing drivers in California could benefit from the legislation. According to SEIU California, 40,000 drivers have signed cards expressing interest in joining a union.