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California gig economy enters new era as drivers approach formal statewide union representation

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Sacramento, California – California’s long-running fight over who gets a voice in the gig economy is moving into a new phase. After more than a decade of organizing, Uber and Lyft drivers are now on the verge of gaining a statewide bargaining representative.

The California Public Employment Relations Board confirmed on August 7 that the California Gig Workers Union, backed by SEIU, has demonstrated enough support among active rideshare drivers to move toward certification. Organizers say that once the process is complete, CGWU will become the world’s largest union representing rideshare drivers.

“BREAKING: California just confirmed: California Gig Workers Union has the driver support to represent Uber and Lyft drivers across the entire state,” SEIU California said. “That makes CGWU the largest union of rideshare drivers ANYWHERE IN THE WORLD.”

PERB verified support from at least 30% of active transportation network company drivers. Data used during the process identified roughly 100,307 active drivers under the applicable rides threshold, meaning the campaign needed authorization from tens of thousands of drivers to clear that mark.

A 30-day waiting period now follows. Certification can move ahead unless another organization demonstrates the required opposition support. PERB indicated that no other driver organization currently meets the eligibility requirements, putting CGWU on track for formal certification in early September.

The breakthrough stems from Assembly Bill 1340, signed by Gov. Gavin Newsom in October 2025. The law created a system allowing rideshare drivers to remain independent contractors while collectively bargaining with Uber and Lyft over issues including compensation, benefits and working conditions.

Earlier this year, CGWU crossed an initial 10% support threshold, allowing organizers to obtain driver contact information and broaden their campaign.

Fresno driver Vikaas Shanker said organizers “worked tirelessly… spending thousands of hours, calling, texting and meeting our fellow drivers all across the state,” describing the union as “the first step toward change” on pay, benefits and working conditions.

Los Angeles driver Margarita Penalosa emphasized the campaign’s driver-to-driver approach. “We built this movement because gig drivers spoke to other gig drivers, across languages, across counties,” she said.

Uber has described the process as the next stage of AB 1340 while stressing that drivers will retain independence and flexibility. Lyft has also said it plans to engage in good faith under the new framework.

CGWU hopes bargaining can begin by the end of 2026. Driver priorities raised during the organizing effort include pay, benefits, deactivation policies, algorithmic management and greater input into technology and policy decisions affecting their work.

If certification proceeds as expected, California’s rideshare drivers will enter something the state’s gig economy has never had at this scale: a formal statewide structure for negotiating collectively while continuing to work as independent contractors.

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