On October 3, 2025, California’s Governor signed Assembly Bill (AB) 1340 which establishes the Transportation Network Company Drivers Labor Relations Act (Act) which provides drivers for certain gig drivers with the right to form, join and participate in the activities of driver organizations, to bargain through representatives of their own choosing, and to engage in concerted activities for the purposes of bargaining or other mutual aid protection.
Under AB 1340, the Public Employment Relations Board (PERB) is tasked with administering the Act, including overseeing elections and determining unfair practices.
The Act will take effect January 1, 2026.
The Act defines a transportation network company or TNC as an organization that provides prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using a personal vehicle.
On January 1, 2026, and every three months thereafter, TNCs must submit to PERB a list of information for drivers who have completed at least 20 rides in California within the preceding six months, including their most recent email address, driver’s license number, phone number, mailing and local residence addresses, platform joining date, and number of rides completed. PERB will then, within two weeks, compile a list of drivers who have completed the median number of drives or more and deem those drivers as active TNC drivers.
TNC driver organizations can trigger an election by presenting PERB with a 10% showing of interest among active TNC drivers, and within 30 days PERB will determine if this showing meets the 10% threshold. If this showing of interest is met, within 30 days of PERB’s determination (and on the 15th of every January, April, July, and October, PERB will provide the drivers union with the list of active TNCs; moreover, within 30 days of PERB’s determination, the TNC must send a notice to its active TNC drivers that the union is trying to organize and represent TNC drivers.
Covered TNCs will be required to negotiate sector-wide agreements with certified driver organizations. These agreements must address issues like these agreement must address issues like appealing the deactivation of a driver, paid leave, safety standards, and grievance procedures. Importantly, agreements cannot reduce minimum driver guarantees or alter drivers’ independent contractor status.