Governor Newsom, Pro Tem McGuire, Speaker Rivas announce support for legislation empowering gig workers, improving rideshare affordability

“For almost a decade, thousands of drivers have fought for a better life. A way forward to the middle class,” said Senate President Pro Tempore Mike McGuire (D-North Coast). “This agreement represents one of the largest in American history — 800,000 Californians who work behind the wheel will now have a path to higher wages, health benefits, and workplace rights. This a big damn deal, uplifting workers and the Golden State’s economy.”

“This is momentous. Hundreds of thousands of California gig workers are headed toward better pay, and Uber and Lyft rides will be more affordable for millions of residents,” said Speaker Robert Rivas (D-Salinas). “While Trump is stripping workers of bargaining rights and rolling-back protections, California is fighting for lower prices and empowering working families. What a way to celebrate Labor Day weekend.”

Assembly Bill 1340, the Transportation Network Company (TNC) Drivers Labor Relations Act, establishes a legal framework for California’s more than 800,000 rideshare drivers to have the choice to join a union and negotiate for better wages, benefits, and protections. Through the passage of this framework, the state will place power in the hands of a quarter-million workers to raise the bar in their industry and create a model for an equitable and innovative partnership with California’s technology sector.

Senate Bill 371 will reduce the cost of providing rideshare services for Californians and remove the burdensome requirement that rideshare drivers carry $1 million in coverage for accidents caused by other drivers who are uninsured or under-insured — a cost that today is passed on to riders. The agreement calls for $60,000 in uninsured motorist coverage per individual and $300,000 per accident.

“This deal is a major victory for both riders and drivers in California,” said Nick Johnson, Director of Public Policy at Lyft. “By bringing runaway insurance costs under control, we can help maintain the affordability of rideshare without sacrificing proper protections, allowing people to more easily get to medical appointments, the airport or simply to work every morning. And more rides mean more earnings for drivers to help them achieve their goals. We’re proud to support legislation that allows us to better serve and connect Californians across the state.”

“Sacramento has come together around the need to make rideshare more affordable in California, and we’re encouraged to see these two bills advancing in tandem. Together, they represent a compromise that lowers costs for riders while creating stronger voices for drivers—demonstrating how industry, labor, and lawmakers can work together to deliver real solutions that reflect how people live, work, and move today,” said Ramona Prieto, Uber’s Head of Public Policy for California.

“Gig workers have been fighting, organizing, and advocating for years, because for too long, the industry’s giants have handed workers a raw deal: you do all the work and take all the risks, while corporations make all the decisions and reap the lion’s share of the rewards. That stops with AB 1340,” said Tia Orr, Executive Director of SEIU California, the sponsor of AB 1340 and voice of 750,000 workers in the State Capitol. “While Trump tears down unions and hands more power to corporations, California is showing that building a worker-first economy is possible only when we put workers in the drivers’ seat.”