The new Uber law in California is a package of changes, with Assembly Bill 1340 and related measures like SB 371 reshaping how rideshare work is organized.
These rules affect not only drivers for Uber and Lyft but also passengers, pedestrians, and other road users who rely on ride-hail services every day.
At the center of the change is a new system that lets gig rideshare drivers form a union-like organization, bargain over wages and working conditions, and push for stronger worker protections. A rideshare accident lawyer in Los Angeles can help you understand what all of this means for drivers and users.
Overview of California’s New Uber Law
The new Uber law in California follows years of debate about pay, safety, and the rights of drivers who rely on apps like Uber and Lyft. Lawmakers created a middle-ground system meant to give drivers a stronger voice while keeping the flexibility many rely on.
Under AB 1340, California allows certified driver groups to represent rideshare workers in talks about pay, benefits, safety standards, and deactivation procedures.
The law also ties into broader insurance reforms, which may affect how injuries are covered and how companies set ride prices across the state.
How AB 1340 Changes Union and Bargaining Rights for Drivers
AB 1340 creates a statewide system that lets rideshare drivers choose a representative group to speak for them in talks with major companies. Instead of drivers negotiating alone, a single driver-led organization can bargain for many workers at once.
Key points include:
- Drivers may select a certified bargaining group.
- The Public Employment Relations Board oversees elections.
- The group can raise concerns about pay and safety.
- Agreements are made at an industry-wide level.
- Rules for fair deactivation and dispute review may be included.
- Bargaining can cover wages, benefits, and trip safety.
- Agreements can apply across multiple rideshare companies.
This system gives drivers a pathway to speak collectively, offering a more organized way to address common issues tied to workplace rights.
What the New Law Means for Uber and Lyft Drivers
The new Uber law gives drivers a clearer voice in issues tied to their pay, safety, and work conditions without changing their independent contractor status.
Key points include:
- Drivers can take part in a statewide bargaining system.
- Pay rates and benefit programs may be shaped through group negotiations.
- Deactivation decisions may have new review options.
- Safety standards and training expectations can be part of discussions.
- Mediation or arbitration may help resolve disagreements between drivers and companies.
These changes aim to give drivers more stability and a fairer process when handling common concerns across the rideshare industry. If you have questions about your working conditions as a driver, a workers’ compensation lawyer in Los Angeles can explain how this law may affect your situation.
Insurance Reforms and What They Mean After a Crash
The reform package tied to AB 1340 includes major changes to rideshare insurance rules through SB 371, which focuses on lowering operational costs for companies while keeping fares more affordable for the public. These changes affect the level of protection available after a crash.
Liability Insurance and UM/UIM Coverage
Under SB 371, rideshare companies are no longer required to maintain the previous $1 million uninsured and underinsured motorist coverage. Instead, the law reduces coverage to $60,000 per individual and $300,000 per accident.
The goal is to ease rising insurance costs for companies like Uber and Lyft, which state officials believe will help prevent fare increases for passengers. SB 371 still requires rideshare companies to maintain certain forms of coverage, including liability insurance and occupational accident coverage.
Insurance Costs and Passenger Fares
By reducing insurance obligations, the law aims to keep rideshare trips within reach for everyday riders. Lower company expenses may help prevent fare spikes, especially during peak travel times.
Even with reduced coverage, riders are encouraged to review their own insurance options and understand how UM/UIM protections work when using a rideshare service. More transparency around coverage may help people make informed choices if an accident occurs.
How the New Uber Law Affects Riders and the General Public
While much of the conversation has focused on drivers, everyday users of Uber and Lyft are also affected. Families rely on rideshare services for work, medical appointments, and nights out. Any change to the system can raise questions about safety, prices, and wait times.
Safety Standards and Data Sharing
The law encourages stronger safety standards and clearer data-sharing protocols with state agencies. That may include better reporting of collisions, more attention to high-risk locations (for example, near Interstate 80 or other busy routes), and closer tracking of safety complaints.
Riders may see updated app features related to:
- Trip tracking and GPS accuracy
- Information about the driver and vehicle
- Guidance on uninsured/under-insured motorist coverage
- How to report discrimination, harassment, or unsafe driving
Possible Changes to Service and Availability
Sector-wide agreements could lead to more stable working conditions, which might help reduce driver turnover. More experienced drivers and clearer workplace rights can, in theory, produce a more reliable service.
On the other hand, if operating costs rise, rideshare companies may experiment with new pricing models or adjust service in lower-demand areas. This balance between living wage goals and rider access is at the heart of current policy debates.
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Questions? Our Rideshare Accident Lawyers in Los Angeles Have Answers
If you were injured in a rideshare accident or have concerns about your rights as a passenger or driver, legal guidance can make a difference. At Omega Law Group Accident & Injury Attorneys, we bring together different strengths to support clients throughout the legal process. Our team draws from decades of combined experience in personal injury matters.
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If you have questions about your situation, reach out today. Our rideshare accident lawyers can explain your options and help you take the next steps with confidence.
