California rideshare drivers can bargain as contractors under AB 1340

California’s AB 1340 gave covered rideshare drivers a way to bargain collectively while remaining independent contractors. Governor Newsom signed it on October 3, 2025, and it took effect January 1, 2026. The law covers transportation network company drivers, including drivers for Uber and Lyft. It does not create the same bargaining system for every delivery worker.

That distinction matters. Proposition 22 preserved contractor status for app-based drivers with its own benefits rules. AB 1340 adds a bargaining channel for covered TNC drivers without turning that classification into employment. The Public Employment Relations Board oversees representation and bargaining under the new framework.

The organizing stage has moved

This was a forecast when the post first ran in October 2025. It is now a fact: PERB certified the California Gig Workers Union on September 9, 2026. The board said at least 30% of active covered drivers authorized the union. It certified the union for a statewide unit, giving it the right to represent those drivers and bargain with Uber and Lyft.

Certification is not a contract. The next question is what terms the union can negotiate, how they are enforced across two platforms, and whether pay or working conditions actually change. PERB was also developing implementing regulations in September 2026. Those details matter more now than speculation about whether a union could ever clear an election threshold.

The cost problem does not disappear

The state paired the labor law with SB 371, which lowered one uninsured-motorist coverage requirement for rideshare trips. The insurance change may help platform costs; bargaining could push driver compensation the other way. Neither outcome is automatic.

Autonomous supply is the other variable. Waymo’s actual driverless service gives Uber and Lyft an alternative in some markets, but public filings do not show that robotaxis can replace most California driver hours or that they cost less per completed ride after fleet work. I would not tell drivers their jobs are already obsolete. I would ask how much bargaining power a statewide representative gains before autonomous trips become a material share of each platform.

AB 1340 has cleared its first meaningful test: a representative was certified. The next test is a bargaining agreement that changes the work.