Gavin Newsom reaches deal with Uber and Lyft that's called the 'largest expansion of private sector collective bargaining in California history'

"The agreement includes a bill for collective bargaining backed by the Service Employees International Union along with a measure sponsored by Uber and Lyft that would significantly reduce the companies' insurance requirements for accidents caused by underinsured drivers, would ultimately reduce costs for passengers. "Labor and industry sat down together, worked through their differences, and found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians," Newsom said in a press release."

"Last July, the California Supreme Court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. It upheld a voter-approved ballot measure passed in 2020 that reversed a 2019 law mandating that Uber and Lyft provide drivers with benefits."

California Governor Gavin Newsom and state lawmakers reached an agreement with Uber and Lyft that allows rideshare drivers to join a union and bargain collectively while remaining independent contractors. The package includes a collective bargaining bill backed by the Service Employees International Union and a company-sponsored measure that would cut insurance requirements for accidents caused by underinsured drivers, lowering passenger costs. The deal follows a California Supreme Court decision affirming that app-based drivers can be treated as independent contractors. The collective bargaining bill would cover more than 800,000 drivers and must pass both legislative chambers before the governor signs it.

Read at Fortune