Uber and Lyft Drivers Now Have Unions in Massachusetts and California: What It Means for Your Pay

For years, rideshare drivers were told they couldn't unionize because they're independent contractors. That changed in 2026. Massachusetts drivers certified the first statewide rideshare union in the country in May, California certified one in September, and Illinois passed a similar law in August. Drivers in all three states stay independent contractors, but they now have a union that can bargain with Uber and Lyft for the whole state at once.

Where things stand, state by state

All three laws cover rideshare drivers for Uber and Lyft. California's law does not cover delivery drivers for apps like DoorDash.

How the process works

• Organizing: In Massachusetts, support from 5% of active drivers lets organizers get other drivers' contact information, and 25% support starts the process. In California, a union needed at least 30% of active drivers to be certified.
• One union for the whole state: this is called sectoral bargaining. A deal covers everyone, full-time or part-time, whether you drive 5 hours a week or 50.
• A deadline backstop: In Massachusetts, if the sides don't reach a deal in about six months, mediation and then binding arbitration kick in. Bloomberg Law reports that California and Illinois also end in a form of arbitration if talks fail.
• Approval: a Massachusetts contract needs a majority vote from drivers and a review by the state Secretary of Labor.

What drivers want

Driver surveys and union leaders point to the same list in every state:

• Higher pay per mile and a bigger share of each fare. One Sacramento driver told the news site Abridged that his cut of a Sacramento-to-Berkeley trip fell from about $80 to about $40.
• Fair deactivation rules. Drivers want a real process and a human to talk to before losing access to the app. The Massachusetts union says the law requires the companies to negotiate over deactivation.
• Benefits, safety and fees. Health coverage, protection from violent passengers, injury coverage, and lower fees for cashing out early.

What Massachusetts drivers already get

Massachusetts bargaining starts from a high floor set by the state's 2024 settlement with Uber and Lyft. As of January 15, 2026, drivers there get:

• $34.48 per engaged hour minimum, from accepting a trip to drop-off. It rises each year by the lower of 3% or inflation.
• A health stipend of $405 a month if you average at least 25 hours a week in a quarter, or $202.50 for 15 to 25 hours.
• Paid sick time: 1 hour for every 30 engaged hours, up to 40 hours a year with each company, paid at $21.22 an hour.
• Occupational accident insurance up to $1 million, paid by the companies.

A union contract can build on these terms. Our state pay laws guide compares these terms with other states.

What won't change

• You stay an independent contractor. You still set your own hours, use your own car and pay your own taxes. Keep tracking your miles. See our mileage rate guide.
• Nothing changes overnight. First contracts take time. Bloomberg Law data shows first contracts under federal labor law average about 463 days. The arbitration backstop in these state laws is meant to move faster.
• Pay in California still runs under Proposition 22, which already guarantees a minimum based on engaged time. How a union contract fits alongside it is one of the big open questions.

Frequently asked questions

Do I have to join or pay dues? The laws let a certified union represent every driver in the state. How dues will work hasn't been set yet, so check with the App Drivers Union (Massachusetts) or the California Gig Workers Union before you sign anything.

Will Uber or Lyft deactivate me for supporting the union? If you think you were punished for organizing, contact your union and your state labor board, which handles these complaints.

I drive in another state. Does this affect me? Not directly yet. But these are the three biggest tests of rideshare bargaining, and other states usually copy what works.

Bottom line

Rideshare drivers in Massachusetts, California and Illinois now have a legal path to bargain over pay, deactivations and benefits without becoming employees. Massachusetts is furthest along, so watch for news there this winter. Until a contract arrives, your earnings depend on the same things they always have. Compare apps in our company directory and run your numbers in the earnings calculator.