California, October 9, 2025
News Summary
Negotiations are set to start between Uber, Lyft, and drivers in California seeking a wage settlement after years of allegations regarding worker compensation. Over 250,000 drivers who worked with these companies from 2016 to 2020 may qualify for a settlement, as efforts to address their demands for better wages and working conditions intensify. With mediation sessions scheduled and ongoing lawsuits, drivers are rallying for a change they believe is long overdue.
California—Negotiations are about to begin between Uber and Lyft and drivers who demand a wage settlement after years of ongoing allegations concerning worker compensation. Over 250,000 drivers who worked with these rideshare companies between 2016 and 2020 may be eligible for a settlement, as indicated by Rideshare Drivers United, a California-based organization. The negotiations with the state will kick off on Monday and are expected to continue for two weeks. Separate discussions with Lyft are scheduled for April 8.
The drivers insist on a settlement that would reimburse them for years of lost wages and improve their working conditions, particularly by safeguarding against unjust deactivation from the rideshare apps. Since 2020, around 5,000 drivers have filed claims with the California labor commissioner’s office for being denied overtime pay, mileage reimbursements, and various employee benefits.
The legal troubles for both companies date back nearly five years when public officials, including California’s then-Attorney General Xavier Becerra along with city attorneys from San Francisco, Los Angeles, and San Diego, sued Uber and Lyft. These lawsuits accused the companies of misclassifying drivers as independent contractors and committing wage theft, alleging they withheld billions of dollars in wages and compensation. These actions were eventually consolidated into a single case in the San Francisco Superior Court.
As part of these lingering legal battles, a mediation session with Uber is set for March 31, while the overarching lawsuits and negotiations will cover the period prior to the enactment of California’s Proposition 22. This proposition allowed Uber, Lyft, and other gig companies to classify their drivers as independent contractors. Proponents of Proposition 22, which garnered over $200 million from the gig economy giants, claimed it was meant to ensure better wages and treatment for independent workers. However, many drivers argue that these promised improvements have not been realized.
Drivers voice mounting concerns over their wages, indicating they work long hours just to meet expenses. Reports suggest that drivers’ earnings have decreased over time. Uber counters these claims, asserting that drivers earn at least 120% of the minimum wage during active hours, and has invested over $1 billion into benefits such as healthcare and accident insurance for drivers. However, studies conducted by the UC Berkeley Labor Center found that, after accounting for expenses and wait times, ride-hail drivers earn an average of only $5.97 per hour without tips and $7.63 with tips.
Critics, including law professor Veena Dubal, believe drivers deserve all owed back pay but indicate that companies are unlikely to concede significant protections for the future due to their substantial investment in Proposition 22. Legislation signed by Governor Gavin Newsom has opened the door for Uber and Lyft drivers to unionize as independent contractors, creating a compromise between labor unions and gig economy companies. This new law permits drivers to collectively bargain while keeping their independent contractor status, though it does not extend to other gig workers such as food delivery drivers.
Furthermore, the legislation decreases insurance requirements for Uber and Lyft, potentially saving around $200 million. The unionization process is set to begin by requiring 10% of active driver signatures, allowing for representation and possible union elections. Under this law, Uber and Lyft must regularly supply data on active drivers to the state labor board.
Supporters of these reforms believe they provide drivers with a stronger voice and greater authority over discussions surrounding their compensation and work conditions. In contrast, critics express concern about insufficient protections related to data transparency regarding driver pay and potential limitations on collective actions taken by drivers. To highlight their cause, rideshare drivers have staged numerous rallies across California, advocating for fair compensation and fighting against allegations of wage theft.
FAQ
When are the rideshare negotiations scheduled to start?
Negotiations with the state are set to start on Monday and will continue for two weeks.
How many drivers are potentially eligible for a 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 public officials 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 is Proposition 22?
Proposition 22, backed by over $200 million from gig companies, including Uber and Lyft, was intended to guarantee better wages and treatment for independent workers, which drivers allege have not been realized.
Key Features of Rideshare Negotiations
| Feature | Description |
|---|---|
| Number of Eligible Drivers | Over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 |
| Negotiation Duration | Two weeks starting Monday |
| Mediation Session | Scheduled with Uber on March 31 |
| Proposition 22 Background | Allowed companies to classify drivers as independent contractors |
| Legislation Impact | Allows drivers to unionize while retaining independent contractor status |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New law signed by Newsom allows ride-share drivers to unionize
- Wikipedia: Union
- CNN: California’s Uber and Lyft union bill
- Google Search: ride share drivers unionization
- The Guardian: Uber and Lyft drivers wage theft settlement in California
- Google Scholar: rideshare drivers compensation
- Daily News: Lyft, Uber drivers push for $1.3 billion wage settlement
- Encyclopedia Britannica: ride share economy
- LAist: Uber, Lyft withheld billions in pay, California alleges
- Google News: California rideshare drivers law
Author: Anaheim Staff Writer
Anaheim Staff Writer The Anaheim Staff Writer represents the experienced team at HEREAnaheim.com, your go-to source for actionable local news and information in Anaheim, 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 major conventions at the Anaheim Convention Center, including NAMM and VidCon, exciting games at Angel Stadium and Honda Center, and developments at Disneyland Resort Our coverage extends to key organizations like the Anaheim Chamber of Commerce and Visit Anaheim, plus leading businesses in hospitality, entertainment, and innovation that power the local economy As part of the broader HERE network, including HERECostaMesa.com, HEREHuntingtonBeach.com, HERESantaAna.com, and HERELosAngeles.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
