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California lets Uber, Lyft drivers unionize

Business

Big news for gig workers: California Governor Gavin Newsom has signed a law letting over 800,000 Uber and Lyft drivers join unions and push for better pay, benefits, and working conditions.
Companies now have to negotiate on things like deactivations and paid leave but can still call drivers independent contractors.

Broader implications for gig economy

California is only the second state (after Massachusetts) to offer this kind of union power to rideshare drivers.
The law aims to settle long-running fights between gig companies and labor groups.
There's also a related change that could lower insurance costs—and possibly fares—but some worry it shifts risk onto regular Californians.
Supporters say it's a step toward fairer work in the gig economy, showing how states can act even when federal politics are stuck.