Uber and Lyft Drivers in California Now Have a Gig Worker Rarity: A Union
Independent contractors, especially gig workers, aren’t generally afforded the rights and privileges of employees. Most don’t have access to healthcare, retirement plans — or unions. But that all changed recently for Uber and Lyft workers in California.
On Sept. 9, the California Public Employment Relations Board certified the California Gig Workers Union as the bargaining organization for drivers working for covered transportation network companies. For now, that means Uber and Lyft. Soon, drivers may be able to negotiate over pay and other working conditions.
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More Than 100,000 California Drivers Could Be Affected
The Transportation Network Company Drivers Labor Relations Act, which took effect Jan. 1, 2026, gives rideshare drivers the right to organize and bargain collectively while retaining their status as independent contractors.
For this all to happen, at least 30% of active drivers had to authorize the union to act as their bargaining representative. After reaching the 10% level in June, support topped the threshold required for certification by August. This led to formal certification by the PERB on Sept. 9.
The potential reach of the union is significant. As of the first half of 2026, PERB reported 100,307 active transportation network company drivers, with the vast majority working with Uber and Lyft. Those two companies alone accounted for more than 99% of the 75.2 million covered rides reported during that period.
A Union Doesn't Guarantee Drivers Higher Pay
A union might fight for workers’ rights, but it doesn’t mean the Uber and Lyft drivers will automatically get raises or new benefits. The ultimate financial effect on drivers, if any, will depend on the union’s course of action and what it can get companies to agree to.
If you’re considering taking a job as an Uber or Lyft driver because of the union news, be aware that the new union doesn’t guarantee higher pay or real benefits. Each bargaining proposal will be fought for by the union, but nothing goes into effect until an actual agreement is reached.
California Is Testing a Different Model for Gig Work
The bigger story may be the unusual combination California has created.
The state has traditionally separated independent contractors from traditional employees for legal purposes. But this new system allows drivers to remain independent contractors while still potentially benefitting from the collective bargaining rights of the union.
As this is all somewhat experimental, it’s worth watching to see how it all plays out in California and whether similar approaches succeed elsewhere in the country. A strong collective bargaining agreement for Uber and Lyft drivers could ultimately alter the economics of rideshare driving for people who rely on these gig jobs for either supplemental income or full-time earnings. Whether or not any agreements alter the pricing structure for riders is also a worthy consideration.
For the time being, nothing about a driver’s paycheck will change immediately simply because the union was certified. But with the earnings of more than 100,000 active California rideshare drivers potentially being affected, these new developments mark a significant change for one of America’s best-known gig-economy jobs.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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