California Grants 800,000 Rideshare Drivers Right to Unionize Amid Insurance Reform

California Governor Gavin Newsom signed landmark legislation granting over 800,000 rideshare drivers the right to unionize and collectively bargain for higher wages, health benefits, and better working conditions under Assembly Bill 1340. This law marks a significant expansion of private-sector labor rights and is part of a broader agreement including Senate Bill 371, which lowers the insurance coverage requirements for rideshare drivers, aiming to reduce costs for both drivers and passengers. The insurance reform reduces the mandatory uninsured motorist coverage from $1 million to $60,000 per individual and $300,000 per accident, addressing one of the largest components of ride fares in California. Uber and Lyft support these changes, as they expect significant cost savings that could help lower fares, while labor leaders emphasize the importance of worker protections amid federal government shutdowns and policy disagreements with President Donald Trump. The legislation reflects a compromise between labor unions, industry, and lawmakers, highlighting California's distinct approach to balancing affordability and worker rights in the gig economy. Additional measures signed reinforce workers' rights to organize when federal protections are insufficient.