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flag California allows Uber and Lyft drivers to unionize, marking a major shift for gig workers.

flag California Governor Gavin Newsom has signed a law granting about 800,000 Uber and Lyft drivers the right to unionize and collectively bargain for better pay and working conditions, marking a major shift for gig workers. flag The law, part of a September agreement between the state, unions, and ride-hailing companies, allows drivers—classified as independent contractors—to form unions and requires companies to bargain in good faith. flag It does not extend to delivery drivers. flag In exchange, insurance requirements for underinsured drivers were reduced from $1 million to $60,000 per person, expected to save companies hundreds of millions and possibly lower fares. flag The move follows a 2020 voter decision that overturned a prior benefits law and comes after a 2024 court ruling affirming drivers’ contractor status. flag The law is seen as a significant compromise between labor advocates and tech companies.

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