California, October 9, 2025
News Summary
California is on the brink of important negotiations as Uber and Lyft drivers demand a wage settlement after years of alleged wage theft and misclassification. Over 250,000 drivers are expected to benefit from the discussions scheduled for two weeks beginning Monday. Drivers advocate for fair compensation, improved working conditions, and protection from unjust deactivation. The backdrop includes lawsuits alleging ride-hailing companies misclassified drivers, denying them employee benefits. Amid these challenges, new legislation allows drivers to unionize as independent contractors, raising hope for better representation.
California is set to embark on critical negotiations as Uber and Lyft drivers call for a wage settlement following years of allegations regarding wage theft and misclassification. The discussions aimed at addressing drivers’ concerns are scheduled to start on Monday and will run for a two-week period. A separate negotiation session with Lyft is planned for April 8.
More than 250,000 drivers who have partnered with these rideshare platforms from 2016 to 2020 are expected to be eligible for the settlement, as indicated by Rideshare Drivers United, a California-based advocacy group. Drivers are seeking compensation for years of lost wages while also advocating for improved working conditions that include protection from unjust deactivation from the rideshare apps.
The backdrop to these negotiations includes lawsuits initiated nearly five years ago by public officials including California’s then-Attorney General Xavier Becerra, alongside city attorneys from San Francisco, Los Angeles, and San Diego. These lawsuits alleged that Uber and Lyft engaged in wage theft and misclassified drivers as independent contractors, effectively denying them the benefits and compensation afforded to employees.
In 2020, a significant proportion of drivers released claims to the California labor commissioner’s office, revealing complaints regarding overtime pay, mileage reimbursement, and other benefits that are typically associated with employment. The escalation of these individual claims culminated in a joint lawsuit in the San Francisco Superior Court.
The negotiations and related lawsuits pertain to the time period before the approval of California’s Proposition 22, which enabled Uber and Lyft, along with other gig economy entities, to categorize their drivers as independent contractors. Proposition 22 was backed by more than $200 million from gig companies and aimed to guarantee improved wages and treatment for independent workers; however, many drivers allege the promised benefits have not materialized.
Amid the ongoing struggles, drivers like Ibrahim Diallo have reported that many are forced to work long hours just to cover their expenses, all while grappling with diminishing earnings. According to Uber, drivers earn at least 120% of the minimum wage during active hours. The company claims to have invested more than $1 billion into benefits like healthcare and accident insurance for drivers. However, studies from the UC Berkeley Labor Center suggest that after accounting for expenses and waiting times, ride-hail drivers take home an average of $5.97 per hour without tips and $7.63 per hour with tips.
Veena Dubal, a law professor and critic of the rideshare companies, argues that drivers are entitled to all back pay owed. However, she expresses doubt about the likelihood of the companies conceding significant future protections due to their financial commitment to Proposition 22.
Another key development includes a new law signed by California’s Governor Gavin Newsom that permits Uber and Lyft drivers to unionize as independent contractors. This legislation forms a compromise between labor organizations and gig economy firms, allowing drivers to collectively bargain without losing their independent status. However, the law does not extend to other gig workers such as food delivery drivers. Moreover, it reduces insurance requirements for the rideshare companies, resulting in savings of approximately $200 million.
The process for unionizing requires gathering signatures from 10% of active drivers, which would enable representation and the potential initiation of union elections if multiple organizations seek to represent drivers. The law mandates that Uber and Lyft regularly submit data on active drivers to the state labor board to foster transparency.
Supporters believe that this significant reform will empower drivers, giving them a more prominent voice in discussions about compensation and working conditions. Conversely, critics remain concerned about insufficient protections regarding transparency about driver pay and possible restrictions on collective actions from drivers. Rideshare drivers have organized rallies across California to advocate for fair compensation and defend their rights amid ongoing allegations of wage theft.
FAQ
What are the current negotiations about?
The negotiations are about wage settlements and improving working conditions for Uber and Lyft drivers who have faced allegations of wage theft and misclassification as independent contractors.
When do the negotiations start?
Negotiations with the state are scheduled to start on Monday and will continue for two weeks, with separate talks with Lyft set for April 8.
How many drivers are potentially eligible for the settlement?
Over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 are potentially eligible for a settlement.
What did the lawsuits allege?
The lawsuits allege that Uber and Lyft withheld billions of dollars in wages and compensation from drivers and misclassified them as independent contractors.
What did California’s Proposition 22 allow?
Proposition 22 allowed Uber, Lyft, and other gig companies to classify drivers as independent contractors while promising better wages and treatment, which many drivers claim have not been fulfilled.
What has been the average hourly earnings of ride-hail drivers?
Studies suggest that ride-hail drivers earn an average of $5.97 per hour without tips and $7.63 per hour with tips after accounting for expenses and wait times.
What is the new legislation regarding rideshare drivers?
The new legislation permits Uber and Lyft drivers to unionize as independent contractors, allowing them to collectively bargain while maintaining their status as independent contractors.
Key Features Summary
| Feature | Details |
|---|---|
| Negotiation Start Date | Monday, duration of two weeks |
| Separate Talks With Lyft | April 8 |
| Eligible Drivers | Over 250,000 between 2016 and 2020 |
| Average Earnings | $5.97 per hour (without tips); $7.63 (with tips) |
| Legislation Signed | Allows unionization of drivers as independent contractors |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New Law Allows Ride-Share Drivers to Unionize
- CNN: California’s Uber Lyft Union Bill
- FOX LA: Ride-Share Drivers Rally for Justice
- Encyclopedia Britannica: Uber
- The Guardian: Uber Lyft Drivers Wage Theft Settlement
- Google News: Uber Lyft Drivers Unionize
Author: STAFF HERE HUNTINGTON BEACH
The Huntington Beach Staff Writer represents the experienced team at HEREHuntingtonBeach.com, your go-to source for actionable local news and information in Huntington Beach, Orange 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 Huntington Beach Surf City USA Marathon, the U.S. Open of Surfing, Fourth of July celebrations at the Huntington Beach Pier, and community festivals at Huntington Beach Central Park. Our coverage extends to key organizations like the Huntington Beach Chamber of Commerce and Visit Huntington Beach, plus leading businesses in retail, hospitality, and outdoor recreation that drive the local economy. As part of the broader HERE network, including HEREAnaheim.com, HERECostaMesa.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
