Robert Rivas, Speaker of the California State Assembly, announced in a press release that supporting AB 1340 and SB 371 will empower gig workers with improved pay and make Uber and Lyft fares more affordable.
“This is momentous. Hundreds of thousands of California gig workers are headed toward better pay, and Uber and Lyft rides will be more affordable for millions of residents,” said Rivas. “California is fighting for lower prices and empowering working families. What a way to celebrate Labor Day weekend.”
According to Governor Gavin Newsom’s website, on August 29, 2025, in Sacramento, Governor Newsom, Senate Pro Tem Mike McGuire, and Assembly Speaker Rivas jointly unveiled support for AB 1340 (sponsored by SEIU California) and SB 371 (sponsored by Uber and Lyft). They framed these bills as critical tools to enhance everyday affordability and empower gig workers statewide. The announcement highlights a coordinated legislative effort to address both economic equity and cost pressures for Californians.
AB 1340, known as the Transportation Network Company (TNC) Drivers Labor Relations Act, creates a state-supervised mechanism enabling over 800,000 Uber and Lyft drivers—still classified as independent contractors—to choose to unionize and collectively negotiate with platform companies while retaining contractor status. The legislation is backed by the Service Employees International Union (SEIU) and represents an unprecedented expansion of private-sector union potential in California, according to AP News.
AP News also reports that SB 371, included in the legislative package, drastically lowers state-required uninsured/underinsured motorist coverage for rideshare drivers from $1 million per individual and accident to $60,000 per person and $300,000 per incident. This reduction is strongly supported by Uber and Lyft and is expected to trim operating costs which could help reduce ride fares for Californians.
Stakeholders are calling this the largest private-sector collective bargaining expansion in California’s history. It enables hundreds of thousands of gig workers to unite under SEIU-sponsored representation. Drivers like Margarita Peñalosa and Mike Robinson hailed the announcement as a breakthrough. They cited dangerous deactivations and declining earnings before this opportunity for greater job protections.
Rivas hails from Salinas’s 30th Assembly District. He rose to Assembly Speaker following careers as a teacher, firefighter, and county supervisor—a background shaped by his upbringing in farmworker housing inspired by his labor-activist grandfather.
