California Uber, Lyft drivers win union after 30% threshold

The California Gig Workers Union cleared the 30% authorization threshold to represent Uber and Lyft drivers on Aug. 7, setting up one of the largest organizing victories in modern labor history.

"On August 7, 2026, we won," said Joseph Augusto, a longtime Uber and Lyft driver from San Francisco and CGWU member. "We have won our union, and the lives of hundreds of thousands of drivers in California are going to change because we have finally won a real voice."

The Public Employment Relations Board confirmed the union met the threshold on Friday and has 30 days to certify CGWU as the exclusive bargaining representative for California's rideshare drivers. The certification follows last year's passage of Assembly Bill 1340, which required rideshare companies to negotiate with unions in good faith despite drivers' classification as independent contractors. Similar legislation has been signed in Illinois and Massachusetts in recent months.

The certification carries significant financial implications for Uber and Lyft, which together rely on hundreds of thousands of California drivers. Union organizers said no dues will be collected until a contract is ratified, but the prospect of collective bargaining over wages and benefits could pressure the companies' margins and potentially raise fares for riders across the state.

The union drive, backed by the Service Employees International Union, follows more than a decade of organizing by rideshare drivers who say pay has deteriorated even as rider fares have held steady. Margarita Penalosa, a Los Angeles-based driver and union organizer who has driven since 2017, said she regularly works 12-hour days, six to seven days a week. "Everybody is desperate and struggling," she said. "We pay high cost of living and driving. And the low pay from the companies, the low amount of money we're making per hour, per ride, per mile — it's unbearable."

Drivers for rideshare companies are classified as independent contractors, which means they do not qualify for overtime pay and other protections granted under federal labor law. AB 1340 created a pathway for collective bargaining without reclassifying drivers as employees — a compromise that preserved the flexibility Uber and Lyft have long argued drivers value.

Both companies issued statements committing to good-faith engagement. "This certification is the next step in delivering on AB 1340, a historic compromise that gives drivers a pathway to representation while preserving the independence and flexibility they've consistently said they value the most," Uber said. Lyft said it remains "focused on helping drivers succeed while keeping rideshare affordable and dependable for everyone who counts on it."

San Diego Drivers United Raises Dues Concerns

Not all drivers support the union. Librado Rivera, cofounder of San Diego Drivers United, which represents 500 drivers, said his organization has concerns about union dues becoming "one more burden" on drivers. "We do have certain concerns about it, especially in regards to the dues that drivers have to be paying in order to be affiliated with receiving this benefit," he said. Rivera said some members of his organization support CGWU, but others are hoping for change at the local government level instead.

CGWU said no dues will be collected until there is a ratified contract, a detail that may ease concerns among drivers wary of additional costs.

The California certification could serve as a template for other states. Illinois and Massachusetts have already signed similar legislation, and union members said they hope their actions inspire further organizing efforts nationwide. For Uber and Lyft, the stakes extend beyond California — a successful collective bargaining framework in the nation's largest rideshare market could reshape labor relations across the gig economy.

The 30-day certification window ends in early September. If certified, CGWU will become the exclusive bargaining representative for California Uber and Lyft drivers, and the companies will be legally required to negotiate in good faith over wages, benefits, and working conditions.

This article is for informational purposes only and does not constitute investment advice.