{"id":24028,"date":"2025-08-29T22:08:24","date_gmt":"2025-08-29T22:08:24","guid":{"rendered":"https:\/\/www.insurancejournal.com\/?p=837519"},"modified":"2025-08-29T22:08:24","modified_gmt":"2025-08-29T22:08:24","slug":"uber-lyft-drop-opposition-to-california-driver-union-bill","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2025\/08\/29\/uber-lyft-drop-opposition-to-california-driver-union-bill\/","title":{"rendered":"Uber, Lyft Drop Opposition to California Driver Union Bill"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.insurancejournal.com\/img\/social\/opengraph\/ij-social-default-1200x630.png\" class=\"ff-og-image-inserted\"><\/div>\n<ul class=\"nav nav-tabs tabs tabs-entry\">\n<li class=\"active\"><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/08\/29\/837519.htm\">Article<\/a><\/li>\n<li><a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/08\/29\/837519.htm?comments\" rel=\"nofollow\">0 Comments<\/a><\/li>\n<\/ul>\n<div class=\"article-content clearfix\">\n<p class=\"reuters\">Uber Technologies Inc. and Lyft Inc. agreed to back a state-supervised way for California drivers to unionize and collectively bargain on industry-wide pay and benefit guarantees, under a new legislative deal that provides the companies relief on insurance costs.<\/p>\n<p>Legislative leaders and Gov. Gavin Newsom (D) on Friday announced support for a pact that includes passing a driver bargaining bill (AB 1340) as well as the rideshare industry-backed SB 371, which lowers the amount of uninsured motorist insurance the state requires the companies to carry for drivers. The Service Employees International Union sponsored AB 1340.<\/p>\n<div class=\"bzn bzn-sized bzn-intext\">\n<ins data-revive-zoneid=\"79\" data-revive-topics=\"personal-auto,ridesharing,sharing-economy\" data-revive-companies=\"lyft,uber\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>The bargaining bill is similar to a ballot measure Massachusetts voters passed in November. Some states have turned their attention to securing bargaining rights for drivers while fights persist in courts and legislatures over ride-hail drivers\u2019 classification, pay, job protections, and benefits.<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/east\/2025\/08\/01\/833943.htm\">Uber Says New York City Courier Rule \u2018Singles Out\u2019 Immigrant Workers<\/a><\/strong><\/p>\n<p>State-level agreements create a model for drivers to organize and negotiate a labor contract outside the federally supervised union rights provided by the National Labor Relations Act, which doesn\u2019t cover them since they\u2019re classified as independent contractors instead of employees.<\/p>\n<p>AB 1340 won\u2019t change gig drivers\u2019 legal status as independent contractors in California, which voters approved through 2020 industry-backed ballot measure Prop 22.<\/p>\n<p>The new legislative package will give approximately 800,000 drivers a means to organize and bargain, representing \u201cthe largest expansion of private sector collective bargaining in California history,\u201d David Green, president of SEIU Local 721, told reporters in a press call Friday.<\/p>\n<p><strong>Related: <a href=\"https:\/\/www.insurancejournal.com\/news\/west\/2025\/07\/21\/832621.htm\">Uber Alleges Inflated Injury Bills in Los Angeles Insurance Fraud Lawsuit<\/a><\/strong><\/p>\n<div class=\"bzn bzn-sized bzn-intext-2\">\n<ins data-revive-zoneid=\"162\" data-revive-topics=\"personal-auto,ridesharing,sharing-economy\" data-revive-companies=\"lyft,uber\" data-revive-block=\"1\" data-revive-id=\"36eb7c2bd3daa932a43cc2a8ffbed3a9\"><\/ins> <\/div>\n<p>Lyft and Uber said the reduced insurance requirement will improve affordability for riders. Uber has said insurance costs account for about a third of total fares statewide, and as high as 45% in Los Angeles, with the uninsured motorist coverage requirement a significant portion of the total cost.<\/p>\n<p>Uber has made a priority of pushing for insurance reform at the state level, and has filed three lawsuits this year accusing lawyers and medical providers of making fraudulent insurance claims that it says have cost the company millions in legal fees.<\/p>\n<p>\u201cWith Sacramento now aligned on the need to make rideshare more affordable in California, we\u2019re happy to see these two important pieces of legislation moving forward together,\u201d said Ramona Prieto, Uber\u2019s head of public policy for California, via email.<\/p>\n<p>\u201cThis deal is a major victory for both riders and drivers in California,\u201d said Nick Johnson, Lyft\u2019s director of public policy, in a statement.<\/p>\n<p class=\"tagtag\"> <span class=\"tagtag\">Topics<\/span> <a href=\"https:\/\/www.insurancejournal.com\/location\/california\/\" class=\"btn btn-sm btn-primary tagtag\">California<\/a> <a href=\"https:\/\/www.insurancejournal.com\/personal-auto\/\" class=\"btn btn-sm btn-primary tagtag\">Personal Auto<\/a> <a href=\"https:\/\/www.insurancejournal.com\/sharing-economy\/\" class=\"btn btn-sm btn-primary tagtag\">Sharing Economy<\/a> <\/p>\n<\/p><\/div>\n<div class=\"article-poll\" data-post=\"837519\">\n<div class=\"article-poll-vote\">\n<p>Was this article valuable?<\/p>\n<\/p><\/div>\n<div class=\"article-poll-feedback voted-no\">\n<form class=\"feedback-form\">\n<p>Thank you! 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