California, October 9, 2025
News Summary
Negotiations are set to begin between Uber, Lyft, and their drivers in California as over 250,000 drivers seek a settlement for unpaid wages and improved working conditions. Separate talks with Lyft are set for April 8, while discussions with Uber will start on Monday, lasting for two weeks. Legal actions against these companies have emerged over accusations of wage theft and misclassification of drivers, with drivers advocating for better compensation and protections against unjust termination. Recent legislation allows drivers to unionize while maintaining their independent contractor status.
California
Negotiations are set to begin between rideshare companies Uber and Lyft and their drivers, who are seeking a wage settlement after years of allegations concerning unpaid wages and poor working conditions. Separate talks with Lyft are scheduled for April 8, while negotiations with Uber will start on Monday and are expected to continue for two weeks.
Over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 are potentially eligible for a settlement, according to Rideshare Drivers United, a California-based organization. Drivers are pressuring for a settlement that would reimburse them for years of lost wages and secure improved working conditions, including protections against unjust termination from the platforms.
In 2020, approximately 5,000 drivers filed claims with the California labor commissioner’s office, reporting that they were denied overtime pay, mileage reimbursement, and other employee benefits. Nearly five years ago, public officials initiated lawsuits against Uber and Lyft, alleging that the companies had withheld billions of dollars in wages and compensation from drivers. These lawsuits, led by California’s then-Attorney General Xavier Becerra along with city attorneys from San Francisco, Los Angeles, and San Diego, accused the companies of misclassifying drivers as independent contractors and engaging in wage theft. The cases were merged into a joint action in the San Francisco Superior Court.
A mediation session with Uber is scheduled for March 31. Notably, the lawsuits and ongoing negotiations pertain to the period prior to the enactment of Proposition 22 in California. This proposition, which was backed by over $200 million from gig companies, including both Uber and Lyft, allowed these firms to classify their drivers as independent contractors while claiming it would guarantee improved wages and treatment for workers, a promise drivers now claim remains unfulfilled.
Ibrahim Diallo, an Uber driver, indicated that over half of drivers struggle to meet expenses due to falling wages. Uber, however, asserts that drivers earn at least 120% of the minimum wage during active hours and highlights its investment of over $1 billion in benefits such as healthcare and accident insurance for its drivers. Furthermore, studies conducted by the UC Berkeley Labor Center reveal that, after expenses and wait times are factored in, ride-hail drivers earn an average of $5.97 per hour without tips and $7.63 with tips.
Legal experts have noted that despite drivers’ claims for back pay, significant future protections from these companies may not be likely due to their substantial investments in Proposition 22. Recently, Governor Gavin Newsom signed legislation allowing Uber and Lyft drivers to unionize as independent contractors. This critical piece of legislation marks a compromise between labor unions and gig economy companies, enabling drivers to collectively bargain while retaining their independent contractor status. However, it should be noted that this law does not apply to other gig workers such as food delivery drivers and reduces insurance requirements for the rideshare services, providing them with potential savings of approximately $200 million.
The law outlines a process for unionizing that involves collecting signatures from 10% of active drivers, which in turn can lead to representation and potential union elections if multiple groups seek to represent drivers. Additionally, the legislation mandates that Uber and Lyft supply data on active drivers to the state labor board regularly, an action that aims to enhance transparency in the industry.
Supporters of this reform argue that it empowers drivers by giving them a voice in discussions regarding their compensation and work conditions. Conversely, critics express concerns about insufficient protections related to data transparency on driver pay and potential limitations on collective actions by drivers. Across California, rideshare drivers have staged rallies demanding fair compensation and defending their rights from wage theft allegations.
FAQ
What are the upcoming dates for negotiations between Uber, Lyft, and their drivers?
Separate talks with Lyft are scheduled for April 8. Negotiations with Uber will start on Monday and are expected to continue for two weeks.
How many drivers are expected to benefit from the potential settlement?
Over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 are potentially eligible for a settlement, according to Rideshare Drivers United.
What allegations have been made against Uber and Lyft?
Public officials’ lawsuits against Uber and Lyft began nearly five years ago, alleging the companies withheld billions of dollars in wages and compensation from drivers.
What are the main objectives of the drivers in these negotiations?
Drivers are pushing for a settlement that reimburses years of lost wages and improves working conditions, including safeguarding against unjust deactivation from the apps.
What law was recently signed regarding Uber and Lyft drivers?
Governor Gavin Newsom signed legislation to allow Uber and Lyft drivers to unionize as independent contractors, marking a compromise between labor unions and gig economy companies.
Key Features Comparison
| Feature | Uber | Lyft |
|---|---|---|
| Upcoming Negotiation Date | March 31 | April 8 |
| Potential Settlement Eligible Drivers | 250,000+ | 250,000+ |
| Recent Lawsuit Initiation | Nearly 5 years ago | Nearly 5 years ago |
| Average Driver Earnings (Without Tips) | $5.97 | $5.97 |
| Average Driver Earnings (With Tips) | $7.63 | $7.63 |
| Unionization Legislation Status | Permitted | Permitted |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New Law Allows Ride-Share Drivers to Unionize
- CNN: California Uber and Lyft Union Bill
- ABC7: Rideshare Drivers Rally for Justice
- FOX LA: Rideshare Drivers Update
- The Guardian: Uber and Lyft Drivers Wage Theft Settlement
- Wikipedia: California Labor Law
- Google Search: Uber Lyft Drivers Unionization
- Google Scholar: Rideshare Drivers Unionization
- Encyclopedia Britannica: Gig Economy
- Google News: Rideshare Driver Lawsuit
Author: STAFF HERE MISSION VIEJO WRITER
MISSION VIEJO STAFF WRITER The MISSION VIEJO STAFF WRITER represents the experienced team at HEREMissionViejo.com, your go-to source for actionable local news and information in Mission Viejo, 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 Oso Fit 5K Fun Run and Community Health Fair, Walk Against Drugs & Community Fair, and National Night Out. Our coverage extends to key organizations like the Mission Viejo Chamber of Commerce and Providence Mission Hospital Mission Viejo, plus leading businesses in retail and education that power the local economy such as The Shops at Mission Viejo, Capistrano Unified School District, and Amazon Delivery Station. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HERESanDiego.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.
