Labor & Employment Law Daily Wrap Up, EXPERT INSIGHTS—Collective Bargaining Rights for Rideshare Drivers: CA + IL Join MA In Paving the Way, (Aug 25, 2026)

By Laura Pierson-Scheinberg, Richard Vitarelli and Sarah Gasperini of Jackson Lewis P.C.

Takeaways

• The California Gig Workers Union is expected to be certified as bargaining representative for rideshare drivers in California, subject to a 30-day statutory waiting period.

• Illinois also recently established a state-supervised, sectoral bargaining system for rideshare drivers, becoming the third state, after Massachusetts and California, to do so.

• The three states reflect an emerging labor relations model that gives rideshare drivers collective bargaining rights without requiring that they be treated as employees under the National Labor Relations Act.

Article

An emerging state trend is giving some drivers for rideshare companies collective bargaining rights. Generally, rideshare drivers are classified as independent contractors not entitled to overtime pay and other protections granted under federal law. But in California, Illinois, and Massachusetts, laws provide rideshare drivers a path to form a union and bargain for protections.

Recently, California and Illinois took significant steps toward extending collective bargaining rights to rideshare drivers, building on a model first implemented in Massachusetts.

Following a November 2024 voter-approved ballot measure and resulting statute (M.G.L. c. 150F, §5), Massachusetts became the first state to certify a rideshare union in May 2026. The App Drivers Union became the exclusive representative of an industrywide unit of transportation network drivers after it demonstrated support from at least 25% of active drivers and no qualifying challenge was filed.

California is approaching its first certification of a statewide driver representative, and Illinois Gov. JB Pritzker has signed legislation creating a similar framework for rideshare drivers.

Together, the three states reflect an emerging sectoral bargaining model that allows a single representative to negotiate statewide standards with covered rideshare companies on behalf of drivers who largely operate as independent contractors outside the traditional National Labor Relations Act (NLRA) framework.

California

California enacted the Transportation Network Company Drivers Labor Relations Act, AB 1340, in 2025. The law permits rideshare drivers providing services through covered transportation network companies to organize and bargain on a statewide, industrywide basis while preserving the independent contractor framework established under Proposition 22.

On Aug. 7, the California Public Employment Relations Board (PERB) determined that the California Gig Workers Union had secured support from at least 30% of the state’s more than 100,000 active Transportation Network Company (TNC) drivers, meeting the threshold for certification without an election. During the 30-day waiting period, however, a competing organization or drivers opposing the union’s representation may trigger an election by demonstrating 30% support. Absent a qualifying challenge, California Gig Workers Union (CGWU) is positioned to become the exclusive bargaining representative. Covered companies will be required to bargain over driver earnings, benefits, deactivations, and other terms and conditions of work. Any resulting sectoral agreement is subject to PERB approval.

With more than 800,000 gig drivers in California, CGWU could become the representative to the largest rideshare bargaining unit in the country.

Illinois

Illinois is following closely behind. The newly signed Transportation Network Driver Labor Relations Act establishes a statewide bargaining unit and authorizes the Illinois Labor Relations Board to certify an exclusive representative. Like California, Illinois permits certification based on a 30% showing of support without a traditional majority election. However, a transportation network driver organization with less than majority support is subject to a seven-day waiting period before certification, during which a competing organization can trigger an election by demonstrating 20% support.

Once a representative is certified, covered rideshare companies must bargain over compensation, benefits, deactivation procedures, paid leave, earnings transparency, safety measures, and other specified subjects. The statute also provides mediation and interest arbitration procedures if bargaining reaches impasse.

Illinois also requires covered companies to pay a per-trip fee to fund administration of the statute and provide funding to the certified exclusive representative for specified education, bargaining, and enforcement activities.

Takeaways

Massachusetts has demonstrated that this model can produce a certified representative. California is poised to test it at greater scale, while Illinois has become the third state to adopt the approach.

If CGWU is certified following the current waiting period, the focus in California will shift from organizing to the practical operation of sectoral bargaining with the covered rideshare companies. Illinois is at an earlier stage, with state agencies first tasked with implementing the new law, identifying covered TNCs and active drivers, and administering the certification process.

The implications may extend beyond these three states and the rideshare industry. Employers that rely on independent contractor workforces should monitor whether other states pursue similar alternatives to traditional NLRA collective bargaining.

Laura Pierson-Scheinberg

Richard Vitarelli

Sarah Gasperini

Jackson Lewis P.C.

666 3rd Ave

28th Floor

New York, NY 10017

United States

Tel.: +1 212 545 4000

E-mail: myupdates@jacksonlewis.com

URL: www.jacksonlewis.com/

© Mondaq Ltd, 2026 - Tel. +44 (0)20 8544 8300 - http://www.mondaq.com

Attorneys: Laura Pierson-Scheinberg, Richard Vitarelli and Sarah Gasperini (Jackson Lewis).

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