California certifies first statewide rideshare workers union

California became the second state in the United States to certify a statewide rideshare workers union in September.

The California Gig Workers Union now has the authority to negotiate directly with Uber and Lyft. These negotiations will establish industry-wide standards for rideshare drivers across the state. The state passed sectoral bargaining laws to allow unions to negotiate for an entire industry rather than with individual companies.

Massachusetts was the first state to pass such a law in 2024, followed by California in 2025 and Illinois in 2026. These laws allow a union to become certified if it demonstrates 10 percent support among active drivers. Once it reaches 30 percent support, it becomes certified unless another union shows 30 percent support. The state defines active drivers as those providing the median number of rides over six months, while excluding drivers with fewer than 20 rides.

Labor advocates are currently pushing to expand this sectoral bargaining model to other industries. While independent contractors are not covered under the National Labor Relations Act, some legal scholars are proposing ways to bypass federal preemption to apply these rules to agriculture and domestic service. Critics argue that these laws may reduce worker flexibility and market dynamism.

They point to the German economy as an example where a long-standing sectoral bargaining system has been linked to lower productivity and economic stagnation.