SACRAMENTO, Calif. (AP) — More than 800,000 drivers for ride-hailing companies in California will soon be able to join a union and bargain collectively for better wages and benefits under a measure signed Friday by Gov. Gavin Newsom.
Supporters said the new law will open a path for the largest expansion of private sector collective bargaining rights in the state's history. The legislation is a significant compromise in the yearslong battle between labor unions and tech companies.
California is the second state where Uber and Lyft drivers can unionize as independent contractors. Massachusetts voters passed a ballot referendum in November allowing unionization, while drivers in Illinois and Minnesota are pushing for similar rights.
Newsom announced the signing at an unrelated news conference at University of California, Berkeley. The new law will give drivers “dignity and a say about their future,” he said.
The new law is part of an agreement made in September between Newsom, state lawmakers and the Service Employees International Union, along with rideshare companies Uber and Lyft. In exchange, Newsom also signed a measure supported by Uber and Lyft to significantly cut the companies' insurance requirements for accidents caused by underinsured drivers.
Lyft CEO David Risher said in September that the new insurance rates are expected to save the company $200 million and could help reduce fares.
Uber and Lyft fares in California are consistently higher than in other parts of the U.S. because of insurance requirements, the companies say. Uber has said that nearly one-third of every ride fare in the state goes toward paying for state-mandated insurance.
Labor unions and tech companies have fought for years over drivers' rights. In July of last year, the California Supreme Court ruled that app-based ride-hailing and delivery services like Uber and Lyft can continue treating their drivers as independent contractors not entitled to benefits like overtime pay, paid sick leave and unemployment insurance. A 2019 law mandated that Uber and Lyft provide drivers with benefits, but voters reversed it at the ballot in 2020.
The collective bargaining measure now allows rideshare workers in California to join a union while still being classified as independent contractors and requires gig companies to bargain in good faith. The new law doesn’t apply to drivers for delivery apps like DoorDash.
The insurance measure will reduce the coverage requirement for accidents caused by uninsured or underinsured drivers from $1 million to $60,000 per individual and $300,000 per accident.
The two measures "together represent a compromise that lowers costs for riders while creating stronger voices for drivers —demonstrating how industry, labor, and lawmakers can work together to deliver real solutions,” Ramona Prieto, head of public policy for California at Uber, said in a statement.
Rideshare Drivers United, a Los Angeles-based advocacy group of 20,000 drivers, said the collective bargaining law isn’t strong enough to give workers a fair contract. The group wanted to require the companies to report its data on pay to the state.
New York City drivers' pay increased after the city started requiring the companies to report how much an average driver earns, the group said.
“Drivers really need the backing of the state to ensure that not only is a wage proposal actually going to help drivers, but that there is progress in drivers' pay over the years,” said Nicole Moore, president of Rideshare Drivers United.
Other drivers said the legislation will provide more job safety and benefits.
Many who support unionization said they have faced a slew of issues, including being “deactivated” from their apps without an explanation or fair appeals process when a passenger complains.
“Drivers have had no way to fight back against the gig companies taking more and more of the passenger fare, or to challenge unfair deactivations that cost us our livelihoods,” Ana Barragan, a gig driver from Los Angeles, said in a statement. “We’ve worked long hours, faced disrespect, and had no voice, just silence on the other end of the app. But now, with the right to organize a strong, democratic union, I feel hope.”
Governor of California Gavin Newsom speaks during the Clinton Global Initiative on Wednesday, Sept. 24, 2025, in New York. (AP Photo/Andres Kudacki)
FILE - A Lyft driver takes a customer to the airport, Jan. 29, 2024, in Baltimore. (AP Photo/Mike Stewart, File)
Iran fired missiles and drones at targets across the Gulf including oil infrastructure in Saudi Arabia and a ship off the coast of the Emirates, while Israeli and the United States struck targets across the Islamic Republic. Saudi Arabia and other states said they intercepted multiple drone attacks.
Six members of the Iranian women’s soccer team will remain in Australia, Home Affairs Minister Tony Burke said Wednesday, while one of the squad members who was previously granted asylum changed her mind and planned to return to Iran.
U.S. President Donald Trump said in social media posts there were no reports of Iran planting explosives in the Strait of Hormuz, through which 20% of the world’s oil is shipped. The U.S. said it took out more than a dozen minelaying Iranian vessels Tuesday to help prevent any attempt to close the waterway.
Iran's vow not to allow any oil through the strategic strait has led to market volatility and fears of shortages, especially in Asia, which is dependent on oil shipped from the region.
Israel struck a building in the center of the Lebanese capital Beirut as part of its campaign against Hezbollah. The Lebanese group has been carrying out attacks against Israel in support of Iran.
Here is the latest:
A projectile hit a cargo ship Wednesday in the Strait of Hormuz, setting the vessel ablaze after the United States targeted Iranian minelaying vessels that could target the narrow mouth of the Persian Gulf.
The United Kingdom Maritime Trade Operations center, run by the British military, said the vessel had been hit just north of Oman in the strait.
It said the crew was evacuating the ship.
Iran did not immediately claim the attack though it has been targeting ships in and around the strait, disrupting a waterway that sees a fifth of all oil and natural gas traded pass through it.
The UKMTO earlier reported on another attack targeting a vessel off Ras al-Khaimah in the United Arab Emirates.
Qatar issued a warning to the public Wednesday morning of a possible Iranian attack.
An Associated Press journalist in Qatar heard explosions as air defenses intercepted incoming fire over Doha, the country’s capital.
Qatar says it won’t serve as a mediator for Iran as it remains under attack from Tehran.
Mohammed bin Abdulaziz al-Khulaifi, Qatar’s minister of state for foreign affairs, made the statement to the Qatari-funded satellite news network Al Jazeera in an interview aired Wednesday.
He noted both Qatar and Oman had been attacked even though they worked to “build bridges between Iran and the West.”
“We will not be able to fulfill that role under attack, and that’s something the Iranians need to understand,” al-Khulaifi said. "The regional countries are not an enemy of Iran, and the Iranians are not understanding that idea.”
Russia said its consulate in the Iranian city of Isfahan was damaged in airstrikes targeting the central Iranian city.
The state-run Tass news agency quoted Russian Foreign Ministry Spokeswoman Maria Zakharova saying there were “no casualties or serious injuries” in the strike Sunday, which targeted the nearby governor’s office in the city.
“Windows were shattered in the office building and residential apartments, and several employees were thrown back by the blast wave. Fortunately, there were no casualties or serious injuries,” Zakharova said.
Videos circulating online and broadcast by local news channels from an apparent strike site in the densely populated Aicha Bakkar area of central Beirut show two floors of a multistory building engulfed in flames.
The strike came without warning. There were no immediate reports concerning who was targeted or the number and extent of casualties.
The structure that was hit is several buildings away from Dar al-Fatwa, the country’s highest Sunni Muslim religious authority.
The strike was in an area far from Beirut’s southern suburbs, where the Israeli military had issued evacuation warnings earlier in the renewed conflict with Hezbollah.
Saudi Arabia’s Defense Ministry said early Wednesday it destroyed five drones heading toward the kingdom’s vast Shaybah oil field in the Empty Quarter desert. It added that it intercepted and destroyed two drones in the Eastern Province.
Kuwait said it downed eight drones over the tiny, oil-rich nation.
Two more members of the Iranian women’s soccer team were granted asylum in Australia before their teammates departed the country, Home Affairs Minister Tony Burke said Wednesday, but one of the women changed her mind and plant to return to Iran.
Six women from the Iranian squad will remain in Australia on humanitarian visas after accepting offers of asylum shortly before their scheduled return home, Burke said. The names and photographs of the team members initially granted asylum have been widely published, including by Burke, and it was not immediately clear which of the women reversed her decision.
The rest of the team’s departure from Sydney, Australia, happened late Tuesday during fraught and outraged protests at the delegation’s hotel and the airport. Iranian Australians sought to prevent the women from leaving the country, citing fears for their safety in Iran.
A projectile hit a container ship early Wednesday morning off the coast of the United Arab Emirates in the Strait of Hormuz, the British military said.
The United Kingdom Maritime Trade Operations center issued the warning, saying the attack happened off Ras al-Khaimah, the UAE’s northernmost emirate on the strait.
The center said the “extent of the damage is currently unknown but under investigation by the crew.”
Ships have effectively halted movement through the strait, the narrow mouth of the Persian Gulf through which a fifth of all oil and natural gas traded passes.
A boy runs inside cement pipe turned into a bomb shelter as air raid sirens warn of incoming Iranian missile strike in Michmoret, Israel, Tuesday, March 10, 2026. (AP Photo/Ariel Schalit)
A man passes in front of a destroyed building that housed a branch of Al-Qard Al-Hassan, a non-bank financial institution run by Hezbollah, which was hit by an Israeli airstrike in Dahiyeh, Beirut's southern suburbs, Lebanon, Tuesday, March 10, 2026. (AP Photo/Hussein Malla)
Protesters wave Iranian flags and hold a portrait of the late Iran's Supreme Leader Ayatollah Ali Khamenei and his son Ayatollah Mojtaba Khamenei to support his selection as the new Iran's Supreme Leader in Baghdad, Monday, March 9, 2026. (AP Photo/Hadi Mizban)
A displaced woman holds a child as another stands beside her between rows of tents at the Camille Chamoun Sports City Stadium, which has been turned into a shelter for people displaced by Israeli airstrikes in southern Lebanon and Dahiyeh, Beirut's southern suburbs, in Beirut, Lebanon, Tuesday, March 10, 2026. (AP Photo/Hassan Ammar)
Smoke rise from an Israeli airstrike in Dahiyeh, Beirut's southern suburbs, Lebanon, Tuesday, March 10, 2026. (AP Photo/Bilal Hussein)
