AB 1340

California Legislation Gives Platform Drivers the Right to Unionize and Collectively Bargain

On October 3rd, Governor Gavin Newsom signed AB 1340 into law, granting California app drivers a path to unionize and bargain contracts with Lyft and Uber. Drivers around the state are asking if this will be good for us, and what the next step is.

Why do drivers need this law? I thought drivers were building our union already - RDU!

Because Uber and Lyft misclassified drivers as “independent contractors,” federal law has blocked us from forming a traditional union. Instead, drivers have instead organized through groups like RDU to fight for legislation and regulation to win new labor rights, improved wages and work conditions.

But Prop 22 stripped away our rights to raise pay through legislation or regulation. AB 1340 could give us a new path: the right to form a union and negotiate a contract with pay increases directly with the companies, even as independent contractors. It’s a creative way to fight for better wages despite Prop 22.

Is this bill strong enough for us to win against Lyft and Uber?

Yes, if drivers are strong in our fight!

RDU members pushed for stronger bill language for months, drafting seven key amendments to give drivers more negotiating power and protections. But they were not included.

Whether the law is too weak or strong enough is up to us as drivers! In Massachusetts, SEIU passed a similar law in 2024, but has yet to deliver a union or contract. But if California drivers build real power through public action, and fight together for a strong first contract, we can change our future forever under this law.

I Heard Uber & Lyft Supported This Bill.

In the final few hours that bills can be amended, Uber and Lyft met with Governor Newsom and SEIU and negotiated a package deal. Uber and Lyft were willing to go along with AB 1340 if the Governor supported their insurance bill, SB 371.

In this negotiation, the companies won SB 371—saving them at least $200 million in insurance costs while putting drivers at risk—while SEIU got AB 1340. Unfortunately, that doesn’t guarantee higher pay for drivers; in fact, the companies are touting that that will lower customers’ costs, not that it will raise our pay. But AB 1340 does present a tremendous opportunity if drivers are ready to meet the moment powerfully.

SEIU/CGWU is Asking Me To Sign a Card to Authorize them to Represent Me. Should I?

Drivers who want to unionize and bargain for better pay and working conditions with the companies should definitely sign a card – and if you want RDU to be the union, sign the RDU card!  https://www.drivers-united.org/card