California, October 9, 2025
News Summary
Negotiations are beginning in California between Uber, Lyft, and state officials as drivers demand wage settlements after years of allegations of wage theft and workplace issues. The talks with Lyft are scheduled for April 8, while discussions with the state will commence on Monday for a two-week period. Over 250,000 drivers from both companies, who worked between 2016 and 2020, may be eligible for a settlement. The negotiations highlight past lawsuits and allegations against these ride-hailing companies regarding misclassification and withholding wages.
California Rideshare Negotiations Set to Begin
Negotiations are set to begin between Uber, Lyft, and state officials as drivers from both companies demand a wage settlement following years of allegations regarding wage theft and workplace injustices. Separate discussions with Lyft are scheduled for April 8, while negotiations with the state are set to commence on Monday and will continue for two weeks. More than 250,000 drivers who worked with Uber and Lyft between 2016 and 2020 may be eligible for a settlement, as reported by Rideshare Drivers United, a California-based organization.
Background of Allegations
Public officials’ lawsuits against Uber and Lyft have been ongoing for nearly five years, citing claims that the companies withheld billions of dollars in wages and compensation from drivers. Initially, approximately 5,000 drivers filed claims with the California labor commissioner’s office in 2020, alleging they were denied necessary employee benefits, including overtime pay and mileage reimbursement. In 2020, California’s then-Attorney General Xavier Becerra, along with city attorneys from San Francisco, Los Angeles, and San Diego, sued Uber and Lyft for misclassifying drivers as independent contractors and for wage theft.
These lawsuits, alongside other individual actions, were combined into a joint case in the San Francisco Superior Court. This legal action took place before the enactment of California’s Proposition 22, which permitted Uber, Lyft, and other gig economy companies to classify drivers as independent contractors. Proposition 22 was backed by over $200 million from gig companies, aiming to assure better wages and treatment for drivers, but many drivers claim these promises have not been fulfilled.
Current Negotiations and Their Importance
Ibrahim Diallo, an Uber driver, stated that more than half of drivers often work extensive hours striving to meet expenses, and many report that their wages have decreased over time. Uber claims that drivers earn at least 120% of minimum wage during active hours and has invested over $1 billion into benefits such as healthcare and accident insurance. However, studies by the UC Berkeley Labor Center revealed that, after accounting for expenses and wait times, ride-hail drivers make an average of $5.97 per hour without tips and $7.63 with tips.
In light of these findings, drivers are advocating for a settlement that would reimburse them for years of lost wages while also demanding improvements in working conditions, including protection from unjust deactivations on the apps. Negotiations with Uber will include a mediation session scheduled for March 31.
Additionally, Governor Gavin Newsom signed legislation allowing Uber and Lyft drivers to unionize as independent contractors. This new law aims to create a balance between labor unions and gig economy companies. The legislation enables drivers to collectively bargain while retaining their independent contractor status but does not extend to gig workers in other sectors, like food delivery drivers.
Under the new union regulations, drivers can collect signatures from 10% of active drivers to initiate the process for representation and potential union elections if multiple groups seek to represent them. The law also mandates that Uber and Lyft must regularly provide data regarding active drivers to the state labor board.
Supporters of this reform view it as a historic move that empowers drivers in negotiations concerning their compensation and working conditions. However, critics argue that the protections regarding data transparency on driver pay and potential limitations on collective actions could remain inadequate.
Rideshare drivers have organized rallies throughout California, advocating for fair compensation and asserting their rights against wage theft allegations.
FAQ Section
What are the key dates for the rideshare negotiations?
Negotiations with the state are set to start on Monday and will continue for two weeks. Separate talks with Lyft are scheduled for April 8, and a mediation session with Uber is scheduled for March 31.
Who is potentially eligible for the 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 issues prompted the lawsuits against Uber and Lyft?
The lawsuits allege that Uber and Lyft misclassified drivers as independent contractors, withheld billions of dollars in wages, and denied drivers essential employee benefits such as overtime pay and mileage reimbursement.
What changes were introduced by Proposition 22?
Proposition 22, which was backed by over $200 million from gig companies, allowed Uber, Lyft, and other gig companies to classify drivers as independent contractors, theoretically ensuring better wages and treatment for those drivers, although many claim these promises have not been fulfilled.
Key Features Summary
| Feature | Details |
|---|---|
| Negotiation Start Date | Monday, ongoing for two weeks |
| Upcoming Talks with Lyft | April 8 |
| Mediation Session with Uber | March 31 |
| Eligible Drivers for Settlement | Over 250,000 drivers from 2016 to 2020 |
| Key Lawsuit Issues | Misclassification, wage theft, denied benefits |
| Proposition 22 Overview | Allowed gig companies to classify drivers as independent contractors |
Deeper Dive: News & Info About This Topic
- Los Angeles Times: New Law to Allow Ride Share Drivers to Unionize
- Fox LA: Rideshare Negotiations Update
- CNN: California’s Union Bill for Uber and Lyft Drivers
- The Guardian: Uber and Lyft Drivers Wage Theft Settlement
- Wikipedia: Ridesharing
Author: STAFF HERE BEVERLY HILLS WRITER
The Beverly Hills Staff Writer represents the experienced team at HEREBeverlyHills.com, your go-to source for actionable local news and information in Beverly Hills, Los Angeles 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 the Rodeo Drive Concours d'Elegance, the Beverly Hills artSHOW, Concerts on Canon, and holiday celebrations throughout the city. Our coverage extends to key organizations like the Beverly Hills Chamber of Commerce and Visit Beverly Hills, plus leading businesses in luxury fashion, hospitality, and entertainment that drive the local economy. As part of the broader HERE network, including HERELosAngeles.com, HERESantaAna.com, HEREHuntingtonBeach.com, and HERECostaMesa.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
