Update Applicable to:	Effective Date
All Covered Transportation Network Companies	January 1, 2026

What happened?

On October 3, 2025, California enacted Assembly Bill 1340, creating the Transportation Network Company Drivers Labor Relations Act.

Overview:

This landmark law gives rideshare drivers the right to organize, join driver organizations, and bargain collectively, while maintaining their independent contractor status.

Who Is Covered

• Applies to Transportation Network Companies (TNCs) such as Uber and Lyft.

• Covers independent rideshare drivers; delivery drivers (e.g., DoorDash) are excluded.

• Prop 22 remains in effect: drivers are still independent contractors.

Additional Information:

Summary of Provisions

• Driver Rights (Section 7470.3)
  
  • Form, join, or refrain from joining driver organizations.
  • Bargain collectively for wages, benefits, and working conditions.

• Administration (Section 7470.4): Public Employment Relations Board (PERB) oversees union elections, certification, and unfair labor practice claims.

• Unionization Process (Section 7470.8)
  
  • 10% support among active drivers triggers PERB review.
  • 30% support triggers an election: 50% support grants automatic certification.
  • Elections conducted via secure remote voting.

• Collective Bargaining (Sections 7470.11–7470.13)
  
  • TNCs must negotiate sector-wide agreements covering:
    
    • Deactivation appeals
    • Paid leave
    • Safety standards
    • Grievance procedures
      
  • Agreements cannot reduce Prop 22 minimums or alter independent contractor status.

Compliance Requirements – Effective January 1, 2026:

• TNCs submit quarterly driver lists to PERB.
• PERB updates active driver lists and shares with unions every January, April, July, and October.
• TNCs must notify drivers when union organizing begins.

Source References

• California Governor – Press Release (August 29, 2025 – AB 1340)
• California AB 1340 – Transportation network company drivers: labor relations

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