California, October 9, 2025
News Summary
In California, critical negotiations are set to begin as over 250,000 Uber and Lyft drivers pursue a wage settlement amidst allegations of wage theft and unfair practices. Separate discussions with Lyft will start on April 8, with negotiations with state officials slated for Monday. Drivers are advocating for compensation for lost wages and improved working conditions, including protection against unjust deactivation. With significant claims and ongoing legal battles, the situation highlights ongoing challenges in the gig economy, as drivers organize for better treatment and representation.
California is set to witness critical negotiations as Uber and Lyft drivers push for a wage settlement following years of allegations about wage theft and unfair compensation practices. Separate talks with Lyft are scheduled to commence on April 8, while negotiations with state officials will start on Monday and last for two weeks. These discussions aim to settle claims involving over 250,000 drivers that worked for Uber and Lyft between 2016 and 2020, as identified by Rideshare Drivers United, a California-based organization.
Drivers are advocating for a settlement that addresses years of lost wages and improves working conditions, particularly regarding protection against unjust deactivation from the rideshare apps. Since 2020, around 5,000 drivers have filed claims with the California labor commissioner, alleging the denial of overtime pay, mileage reimbursement, and other employee benefits.
The legal challenges against Uber and Lyft began nearly five years ago when California’s then-Attorney General Xavier Becerra and city attorneys from San Francisco, Los Angeles, and San Diego filed lawsuits. These lawsuits claimed that both companies misclassified drivers as independent contractors, which led to wage theft totaling billions of dollars. The individual claims from drivers, alongside the lawsuits, were merged into a joint case in the San Francisco Superior Court.
A mediation session with Uber is set for March 31, while the issues at hand date back to before California’s Proposition 22 was enacted. Proposition 22 allowed Uber, Lyft, and other gig companies to classify drivers as independent contractors, with the promise of improved wages and treatment for these workers, which drivers argue have not been delivered. The proposition was supported by over $200 million from the gig companies.
Reports from various drivers indicate that many struggle with decreasing wages despite long hours worked to cover living costs. Uber has claimed that its drivers earn at least 120% of minimum wage during active hours and has invested over $1 billion into health and accident insurance benefits. However, research by the UC Berkeley Labor Center found that ride-hail drivers earn an average of only $5.97 per hour after expenses and wait times, without tips, and $7.63 with tips.
California Governor Gavin Newsom recently signed legislation enabling Uber and Lyft drivers to unionize as independent contractors, establishing a middle ground between labor unions and gig economy firms. This new law permits collective bargaining while keeping drivers in their independent contractor status and does not extend to food delivery workers. Critics express concern that the protections may fall short when it comes to data transparency regarding pay and the limitations on collective action by drivers.
The law aims to provide drivers with a voice and greater authority in discussions about their compensation and working conditions. A procedure for unionizing requires collecting signatures from 10% of active drivers and could lead to representation and potential union elections. Furthermore, Uber and Lyft must regularly supply the state labor board with data on active drivers.
As negotiations approach, rideshare drivers have organized rallies across California, demanding fair compensation and defending their rights in the face of allegations of wage theft.
FAQ
What is the purpose of the negotiations between Uber, Lyft, and drivers?
The negotiations aim to settle claims involving over 250,000 drivers that worked for Uber and Lyft between 2016 and 2020, focusing on years of lost wages and improved working conditions.
When are the negotiations scheduled to take place?
Negotiations with state officials will start on Monday and continue for two weeks, while separate talks with Lyft are scheduled for April 8.
What allegations have been made against Uber and Lyft?
Public officials have filed lawsuits alleging that Uber and Lyft misclassified drivers as independent contractors and withheld billions of dollars in wages and compensation.
What is Proposition 22, and how does it affect drivers?
Proposition 22 allowed Uber and Lyft to classify drivers as independent contractors, which drivers argue has not ensured the promised better pay and treatment.
What is the new union law for rideshare drivers?
The law allows Uber and Lyft drivers to unionize while maintaining their independent contractor status and facilitates collective bargaining. However, it does not extend to other gig workers, such as food delivery drivers.
Key Features Overview
| Feature | Description |
|---|---|
| Negotiation Start Dates | State negotiations commence on Monday, and Lyft talks are scheduled for April 8. |
| Driver Involvement | Over 250,000 eligible drivers who worked for Uber and Lyft between 2016 and 2020. |
| Allegations | Misclassification and wage theft totaling billions of dollars according to lawsuits. |
| Proposition 22 | Allows classification of drivers as independent contractors, but drivers claim this has not led to better wages. |
| Union Law | New legislation allows unionization of Uber and Lyft drivers while retaining their independent contractor status. |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New law signed by Newsom allows ride share drivers to unionize
- Wikipedia: Union
- CNN: California Uber Lyft union bill
- Google Search: rideshare drivers union
- ABC7: Rideshare drivers rally downtown LA
- Encyclopedia Britannica: Wage Theft
- The Guardian: Uber Lyft drivers wage theft settlement California
- Google Scholar: California rideshare drivers
- Los Angeles Times: Deal to allow Uber Lyft drivers to unionize
- Google News: Uber Lyft California union
Author: STAFF HERE CORONADO
The Coronado Staff Writer represents the experienced team at HERECoronado.com, your go-to source for actionable local news and information in Coronado, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Coronado Island Film Festival, productions at Lamb’s Players Theatre, community workshops at John D. Spreckels Center, and iconic celebrations at Hotel del Coronado. Our coverage extends to key organizations like the Coronado Chamber of Commerce and Visit Coronado, plus leading businesses in hospitality, dining, and tourism that drive the local economy. As part of the broader HERE network, including HERESanDiego.com, HEREHuntingtonBeach.com, HERELongBeach.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
