California’s Governor Gavin Newsom has signed a law granting union rights to over 800,000 ride-hailing drivers, allowing them to negotiate for better wages and benefits while remaining classified as independent contractors. This law marks a significant expansion of collective bargaining rights in the state, following similar measures in Massachusetts and ongoing efforts in Illinois and Minnesota.
The legislation, a compromise after years of contention between labor unions and tech companies, requires gig companies to bargain in good faith with drivers. While the law does not extend to delivery app drivers like those on DoorDash, it represents a major shift in the landscape of gig economy labor rights. The move has been praised by labor advocates and supporters who argue it opens a path for the largest expansion of private sector collective bargaining rights in the state’s history.
Similar measures have been enacted in Massachusetts through a ballot referendum, with Illinois and Minnesota drivers also pushing for comparable rights. The new law is seen as a turning point in the fight for fair treatment and better working conditions for gig economy workers. As the law takes effect, it is expected to spark further discussions and potential legislative actions in other states concerning the rights and protections of freelance and independent contractors.