In a historic step in empowering workers in the gig economy, Governor Gavin Newsom signed legislation October 3 that creates a path for a union and collective bargaining rights for over 800,000 rideshare drivers working for companies like Uber and Lyft.

The bill, passed by the California legislature and authored by Asm. Buffy Wicks and Asm. Berman, empowers drivers to negotiate wages, benefits, and working conditions for the first time in the state’s history.

“This is about fairness,” said Joe Augusto, a full-time rideshare driver in San Francisco. “We spend 10 to 12 hours a day on the road, yet we’re not held to the same standards — or afforded the same protections — as other workers. For years, drivers haven’t had a voice in setting fair pay or protections. This bill finally gives us the opportunity to form our union and be treated fairly.”

“Drivers have had no way to fight back against the gig companies taking more and more of the passenger fare, or to challenge unfair deactivations that cost us our livelihoods,” said Ana Barragan, a gig driver from Los Angeles. “We’ve worked long hours, faced disrespect, and had no voice, just silence on the other end of the app. But now, with the right to organize a strong, democratic union, I feel hope. We finally can bargain for fair wages, respect, and a better future.”

“This law is about dignity and fairness for the people who keep California moving,” said Assemblymember Buffy Wicks (D-Oakland). “For too long, drivers have not had a meaningful seat at the table in helping to shape their livelihoods. AB 1340 gives them the power to stand together, bargain for better pay and protections, and help build a future where the gig economy works for the people behind the wheel.”

“Today marks a historic leap forward for fairness and dignity on the job for hundreds of thousands of California workers who, thanks to Governor Newsom signing AB 1340, will now have the opportunity to join a union,” said Assemblymember Marc Berman (D-Menlo Park). “Rideshare drivers are the backbone of the gig economy, and for too long they have been denied the same rights and protections others take for granted. This new law changes that – they will now have the opportunity to sit at the bargaining table with TNCs to negotiate for better pay, safer working conditions, and a voice in the future of their work. This will help raise standards for everyone, because what happens in the gig economy sets the tone for the whole economy.”

Under AB 1340, drivers will be able to:

• Form a union and bargain collectively
• Negotiate an industry-wide contract, ensuring fair standards across the rideshare industry and preventing companies from seeking a competitive advantage by driving down wages.
• Protect gig drivers from retaliation for speaking out for better working conditions

With decreasing pay, arbitrary “deactivations” that lead to loss of livelihoods, as well no pathway to improve working conditions, gig drivers say collective bargaining is the only realistic way to protect workers in a tech-dominated economy.

“When gig companies spent over $200 million to pass Prop 22, their goal was simple: protect their profits by stripping workers of basic rights,” said Theresa Rutherford, SEIU 1021 president. “The effects on our communities were devastating: working people and their families were driven deeper into economic insecurity – most are people of color and many are immigrants. The companies wrote their own labor law to take away basic protections, but workers fought back and found a path forward together with a union.”

“The gig economy isn’t going away, but worker exploitation doesn’t have to be part of it,” said David Green, SEIU 721 president and executive director. “For too long tech giants have profited by stripping workers of their rights, masking exploitation behind apps and algorithms. They called this exploitation ‘innovation,’ though there’s nothing new about that. Now, gig drivers are fighting back by joining together and have won the power to form a union and bargain collectively for fair pay, job security, and dignity on the job.”

“Uber and Lyft built their fortunes on drivers’ backs, driving down wages while forcing drivers and riders to shoulder higher and higher costs; now that drivers have an opportunity to take their seat at the table, gig corporations’ dodging of responsibility is over,” said Riko Mendez, chief elected officer of SEIU 521. “AB 1340 marks a new dawn for drivers and riders. With the power to form a union and bargain over wages and working conditions, drivers are not just winning fairness for themselves—they are lighting the path for millions of workers in the new economy. Their power will make rides safer and better for the consumer too. AB 1340 is more than a bill; it is a declaration that gig workers are not invisible, not disposable, but essential. This victory belongs to the drivers who never gave up, and it signals a future where their voices will not only be heard, but will reshape the rules of work for generations to come.”

“Trump is gutting workers’ fundamental right to come together and demand fair pay and treatment,” said Tia Orr, executive director of SEIU California. “But here in California, we are sending a different message: when workers are empowered and valued, everyone wins. Shared prosperity starts with unions for all workers.”

“From California to Massachusetts, rideshare drivers are steering us toward a new era of labor organizing,” said April Verrett, international president of SEIU. “Rideshare drivers are imagining a better world and coming together to make it happen — and in the process, they are on track to deliver some of the largest private sector organizing wins in a century. When workers know their worth, recognize the power of a union, and have the courage to pave new paths for organizing in the new economy, they have the power to transform their jobs and their lives.”

AB 1340 follows similar reforms in Massachusetts, and organizing efforts are underway in Minnesota and Illinois. If fully implemented across states, policies similar to AB 1340 would expand workers’ bargaining power in the private-sector union dramatically.

Seventy percent of Americans polled support gig rideshare drivers having greater workplace protections, regardless of political party, and 65% of Americans believe a union for rideshare drivers provides for better worker protection and maintains flexibility.