09-01-2026
Employer Insight: New state laws enacted in California, Illinois, and Massachusetts allow rideshare drivers to form unions, with Massachusetts certifying the first rideshare union in May 2026, after voters approved it. It is certainly a first for these independent drivers to form unions and bargain for protections without qualifying as employees under the National Labor Relations Act (NLRA).
The more than 500,000 drivers in these three states will have the ability to bargain for driver earnings, benefits, app deactivations, terms and conditions, and more, while remaining independent contractors.
In Massachusetts, the union was certified by the Massachusetts Department of Labor Relations (DLR), sparking the largest private sector bargaining victory since the 1940s and first union of gig workers in the country.
In California, rideshare drivers will unionize with the California Gig Workers Union. Employers included under the state’s Transportation Network Company Drivers Labor Relations Act must bargain over negotiated agreements. The Act creates an “interest arbitration” thus suggesting that employers may have contracts imposed on them if negotiations between the parties reach an impasse.
Illinois created a state-supervised bargaining system for its gig drivers. The state’s law makes provisions for mediation and interest arbitration procedures, with Illinois law mandating that covered companies pay a per-trip fee to fund the statute’s administration and certain related activities.
Employers who use independent contractors may consider noting the new collective bargaining for gig drivers, as this type of worker protection could expand to other states and fields.