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California's New Law Gives Uber, Lyft Drivers Union Rights, Cuts Insurance Requirements

Drivers gain the right to unionize and collectively bargain for better wages. Insurance cuts could make rides cheaper for consumers.

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California's New Law Gives Uber, Lyft Drivers Union Rights, Cuts Insurance Requirements

California's Gov. Gavin Newsom has signed a new law that significantly impacts Uber and Lyft drivers. The measure allows over 800,000 drivers to unionize and bargain collectively, while also reducing insurance requirements for gig companies.

The new law, part of an agreement between state lawmakers, the Service Employees International Union, and rideshare companies, is a victory for drivers who have long faced issues like being 'deactivated' without explanation. It makes California the second state where Uber and Lyft drivers can unionize as independent contractors.

Drivers can now join a union and collectively bargain for better wages and benefits. This is a major change as previously, drivers had limited power to negotiate fair pay and working conditions. The law also requires gig companies to bargain in good faith with drivers.

In addition, the law includes a measure to cut the companies' car insurance requirements for accidents caused by underinsured drivers. The requirement is reduced from $1 million to $60,000 per individual and $300,000 per accident. This change is expected to lower fares in California, which have been consistently higher than in other parts of the U.S. due to insurance requirements.

The new law is a significant step towards improving the working conditions and pay for California's ride-hailing drivers. While some, like Rideshare Drivers United, argue that the collective bargaining law isn't strong enough, it's a substantial change that will impact hundreds of thousands of drivers. The law also promises to make rideshare services more affordable for consumers by reducing car insurance requirements.

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