Crucial Rideshare Driver Negotiations Set to Begin in California

California, October 9, 2025

News Summary

Starting Monday, California will witness significant negotiations involving Rideshare Drivers United alongside Uber and Lyft. The discussions, expected to last two weeks, focus on settling claims of wage theft and poor working conditions affecting over 250,000 drivers from 2016 to 2020. The mediation follows years of lawsuits regarding misclassification as independent contractors. Drivers seek not only financial reimbursement for lost wages but also improved working conditions. These negotiations underscore vital issues surrounding Proposition 22 and regulations surrounding gig economy workers.

California is set to witness crucial negotiations beginning Monday between Rideshare Drivers United and Uber and Lyft, as drivers demand a settlement addressing years of alleged wage theft and poor working conditions. Over 250,000 drivers who worked for these rideshare companies between 2016 and 2020 may be eligible for compensation, according to the California-based organization advocating for driver rights. These negotiations, expected to last two weeks, aim to provide a resolution to claims stemming from allegations that rideshare companies withheld billions of dollars in wages.

The negotiations follow nearly five years of lawsuits from public officials against Uber and Lyft. These lawsuits focused on the companies’ misclassification of drivers as independent contractors instead of employees, effectively denying them overtime pay, mileage reimbursement, and other critical benefits. A mediation session is slated for March 31 with Uber, while separate discussions with Lyft are scheduled for April 8.

Drivers are seeking a settlement that not only reimburses years of lost wages but also improves overall working conditions. This includes protections against unjust deactivation from the rideshare apps. In 2020, approximately 5,000 drivers filed claims with California’s labor commissioner, articulating their concerns regarding wage theft and lack of employee rights.

These legal actions have been compounded by individual circumstances and were eventually merged into a joint case in the San Francisco Superior Court. The ongoing negotiations highlight issues pertinent to a pre-Proposition 22 period, which allowed Uber, Lyft, and other gig economy companies to classify drivers as independent contractors. Although Proposition 22 aimed to provide better treatment and more guaranteed wages for independent contractors, many drivers contend that these improvements have not materialized. Over $200 million was invested by gig companies to support Proposition 22’s passage.

The economic realities faced by many drivers underscore the urgent need for change. For instance, reports indicate that more than half of drivers work extended hours just to meet their expenses, while their earnings have generally declined over time. Although Uber claims that its drivers earn at least 120% of the minimum wage during active work hours and has invested over $1 billion in healthcare and other benefits, studies from the UC Berkeley Labor Center reveal that ride-hail drivers earn an average of $5.97 per hour after expenses and wait times, and $7.63 with tips.

California’s previous Attorney General and city attorneys from major cities, including San Francisco, Los Angeles, and San Diego, initiated the lawsuits against Uber and Lyft, emphasizing labor misclassification and wage theft. Critics, including legal scholars, assert that the companies owe drivers significant back pay, though skepticism remains as to whether they will offer substantial future protections given their financial commitment to Proposition 22.

A new law allowing Uber and Lyft drivers to unionize as independent contractors offers some hope for improved working conditions. This legislation, a compromise between labor unions and gig economy companies, permits collective bargaining while maintaining independent contractor status, although it does not extend to other gig workers, like food delivery drivers. The unionization process requires collecting signatures from 10% of active drivers and mandates that Uber and Lyft regularly supply driver data to the state labor board.

Supporters of the legislation argue that it empowers drivers, granting them a voice in discussions about compensation and working conditions. However, there are concerns regarding deficiencies in data transparency related to driver pay and the potential constraints on collective action.

In the meantime, rideshare drivers have mobilized through rallies across California, demanding fair compensation and fighting against allegations of wage theft.

Frequently Asked Questions

Key Features of the Rideshare Negotiations

Feature	Description
Negotiations Start Date	Monday, lasting for two weeks
Eligible Drivers	Over 250,000 drivers (2016-2020)
Key Demands	Settlement for lost wages and improved conditions
Lawsuit Duration	Initiated nearly five years ago
Proposition 22	Allowed misclassification; aimed for better treatment
New Union Law	Enables unionization while maintaining independent status

Deeper Dive: News & Info About This Topic

• Los Angeles Times: New Law Signed by Newsom Allows Ride-Share Drivers to Unionize
• Fox LA: Rideshare Drivers Unionization News
• CNN: California Rideshare Union Bill
• The Guardian: Uber and Lyft Drivers Wage Theft Settlement in California
• Daily News: Lyft and Uber Drivers Push for Settlement
• Wikipedia: Gig Economy
• Google Search: Rideshare Drivers Unionization
• Google Scholar: Rider Rights
• Encyclopedia Britannica: Labor Law
• Google News: Rideshare Industry