California Rideshare Negotiations Begin Over Wage Settlements

California, October 9, 2025

News Summary

Negotiations set to start in California next week involve Uber and Lyft drivers seeking compensation for alleged wage theft. Over 250,000 drivers from 2016 to 2020 may be eligible for a settlement as they advocate for better working conditions and protection against unjust deactivations. Legal battles over these wage issues began nearly five years ago, escalating tensions between drivers and rideshare companies. Recent legislation has allowed drivers to unionize while still maintaining independent contractor status, leading to changes in bargaining power in the gig economy.

California: Rideshare Negotiations Set to Begin as Uber and Lyft Drivers Demand Wage Settlement After Years of Allegations

Negotiations between Uber, Lyft, and drivers seeking compensation for alleged wage theft are scheduled to commence in California next week. Over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 may be eligible for a potential settlement, according to Rideshare Drivers United, a California-based organization. The negotiations with the state are set to start on Monday and will span two weeks, with separate talks with Lyft scheduled for April 8.

Drivers are advocating for a settlement that addresses years of lost wages and works towards enhancing their working conditions. They also aim to ensure protections against unjust deactivations from the rideshare apps. In 2020 alone, around 5,000 drivers filed claims with California’s labor commissioner’s office, asserting the denial of overtime pay, mileage reimbursement, and other benefits typically afforded to employees.

The legal battle against Uber and Lyft began nearly five years ago, initiated by California’s then-Attorney General Xavier Becerra alongside city attorneys from major cities, including San Francisco, Los Angeles, and San Diego. These lawsuits allege that the companies misclassified drivers as independent contractors, leading to wage theft. Over time, these individual lawsuits were consolidated into a joint case in San Francisco Superior Court.

A mediation session with Uber has been scheduled for March 31. The discussions and lawsuits pertain to the timeframe preceding California’s Proposition 22 implementation, which allowed rideshare companies to classify drivers as independent contractors. Proposition 22 was heavily funded by gig companies, including Uber and Lyft, with over $200 million spent to sway public opinion in favor of the measure. The proposition was intended to guarantee better wages and treatment for independent workers, claims that drivers argue have not been fulfilled.

Many drivers, such as Ibrahim Diallo, have reported that they often work extensive hours merely to cover costs. They express concerns that their earnings have progressively decreased over time. Uber asserts that drivers earn at least 120% of minimum wage during active hours, combined with claims of having invested over $1 billion in driver benefits like healthcare and accident insurance.

Research conducted by the UC Berkeley Labor Center indicates that after expenses and waiting times, ride-hail drivers earn an average of $5.97 per hour without tips and $7.63 per hour with tips. Veena Dubal, a law professor critical of Uber and Lyft, has stated that drivers deserve back pay owed to them but argues that the companies may not concede to significant future protections owing to their heavy investment in Proposition 22.

California Governor Gavin Newsom recently signed legislation that allows Uber and Lyft drivers to unionize while maintaining their independent contractor status. This development is viewed as a compromise between labor unions and gig economy companies. The new law enables drivers to collectively bargain but notably excludes other gig workers, such as food delivery drivers, from these protections. Additionally, the legislation is designed to lower insurance requirements for Uber and Lyft, resulting in an estimated saving of approximately $200 million.

The unionization process necessitates gathering signatures from 10% of active drivers, which paves the way for collective representation and potential elections if multiple organizations seek to represent drivers. Moreover, Uber and Lyft are required to regularly provide data on active drivers to the state labor board.

Supporters of this recent reform argue that it provides drivers with a voice and improves their influence over discussions regarding compensation and working conditions. Conversely, critics express concern over inadequate protections for data transparency regarding driver pay and potential limitations on drivers’ abilities to engage in collective actions.

In response to ongoing issues related to wage theft, rideshare drivers have organized rallies throughout California, advocating for fair compensation and asserting their rights in light of the allegations against the rideshare companies.

FAQ

Key Features of the Rideshare Negotiations

Feature	Details
Potential Eligibility for Settlement	Over 250,000 drivers from 2016 to 2020 may claim compensation.
Negotiation Timeline	Negotiations start Monday and run for two weeks, with separate talks on April 8.
Key Issues	Reimbursed wages, improved working conditions, protection against unjust deactivation.
Past Legal Actions	Lawsuits filed by public officials alleging wage theft and misclassification of drivers.
Recent Legislation	California drivers can now unionize while maintaining independent contractor status.

Deeper Dive: News & Info About This Topic

• Los Angeles Times: CA Law Allows Rideshare Drivers to Unionize
• Wikipedia: Ridesharing
• CNN: California Uber Lyft Union Bill
• Google Search: Uber and Lyft drivers unionization
• Fox LA: Rideshare Driver Negotiations Video
• Google Scholar: Rideshare Driver Rights
• ABC7: Rideshare Drivers Rally for Justice
• Encyclopedia Britannica: Rideshare Laws
• Los Angeles Times: Deal for Rideshare Drivers Union