California leaders and ride-hailing companies reached an agreement to enable app-based drivers to organize and form unions through two bills: Assembly Bill 1340 (sponsored by SEIU California) and Senate Bill 371 (sponsored by Uber and Lyft). The arrangement creates a model for drivers to seek increased pay, job protections, and other benefits while regulators will consider reducing expensive insurance coverage mandates that companies say raised fares and reduced driver pay. The deal follows years of legal and political battles including Prop 22, addresses driver complaints about pay control and deactivations, and could influence policies in other states.
Newsom called it an "historic agreement between workers and business that only California could deliver."
He said labor representatives and the companies "found common ground that will empower hundreds of thousands of drivers while making rideshare more affordable for millions of Californians."
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