Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.
Chapter 10.7 - Transportation Network Company Drivers Labor Relations Act
California Business and Professions Code — §§ 7470-7470.21
Sections (15)
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)It is the policy of the State of California to encourage and protect the right of transportation network company drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.
(b)The benefit to the state’s economy from negotiated agreements between
transportation network company drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the state’s intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in negotiations and other activities as authorized or regulated by this chapter.
(c)The purposes of this chapter are to provide
transportation network
company drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and transportation network company drivers, and to improve the working conditions of transportation network company drivers and therefore the services provided to the general public.
(d)It is the
policy of the state to establish various notice requirements, conditions, and timelines governing the representation of transportation network company drivers. It is the policy of the state to require transportation network companies and certified driver bargaining organizations to negotiate in good faith pursuant to the act and to set forth procedures for mediation and arbitration for purposes of reaching a bargaining agreement.
(e)In November 2020, the California voters approved Proposition 22, the “Protect App-Based Drivers and Services Act,” which has been codified in Chapter 10.5 (commencing with Section
7448). That measure establishes certain minimum standards for app-based drivers, while allowing, as the California courts have held, the state to create a system for negotiations between transportation network company drivers and transportation network companies, including, by agreement, to voluntarily increase the standards that were established by Proposition 22. This chapter establishes a robust system to authorize those negotiations, while accommodating Proposition 22, which limits the state’s ability to impose certain terms through the binding interest arbitration process that applies if the parties are otherwise unable to reach an agreement but does not otherwise impose limits on that process.
(f)Because of the nature of the industry, many individuals who perform work as transportation network company drivers have only a short-term or highly intermittent relationship with the industry. For both logistical and policy reasons, this chapter establishes a threshold for eligibility to participate in the selection of a union representative so the choice can be made by those drivers who have more than a casual or short-term relationship with the industry and, therefore, have a more significant interest in making that choice.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
For purposes of this chapter, the following definitions apply:
(a)“Active TNC driver” means a transportation network company (TNC) driver who has driven at least the minimum number of rides during the past six months with a covered TNC’s platform in the State of California, as determined by the board pursuant to Section
7470.6.
(b)“Board” means the Public Employment Relations Board established pursuant to Section 3541 of the Government Code.
(c)“Certified driver bargaining organization” means an organization that has been certified by the board as the representative of all TNC drivers in the state for purposes of
bargaining pursuant to this chapter.
(d)(1) “Company union” means any committee, worker representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:
(A) A TNC has initiated or created the union, proposed its initiation or creation, participated in the formulation of its governing rules or policies, or participated in or supervised its management,
operations, or elections.
(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed on its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.
(2)A TNC driver organization shall not be deemed a company union solely because any of the following are true:
(A)It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of
TNC drivers represented by the TNC driver organization.
(B)In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNC’s premises.
(C)It has received from a TNC the voluntary membership dues deductions of TNC drivers or the TNC has processed or transmitted membership dues pursuant to subdivision (d) of Section 7470.9.
(D)It has received funds from a TNC for the
administration of benefits and services to TNC drivers pursuant to a bargaining agreement in its capacity as the certified driver bargaining organization.
(e)“Covered TNC” means a TNC that is a covered TNC based on ride-share volume, as determined pursuant to Section 7470.5.
(f)“Multicompany committee” means a committee formed by multiple TNCs for purposes of bargaining pursuant to this act.
(g)“Scope of representation” has the same meaning as set forth in Section 7470.11.
(h)“Sectoral agreement” means an agreement between covered TNCs and the certified driver bargaining organization that meets the requirements of Section 7470.13 and that, if approved by the board, will apply to all covered TNCs.
(i)“Transportation network company” or “TNC” is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC
drivers.
(j)“Transportation network company driver” or “TNC driver” means any person who uses a personal vehicle in connection with a TNC’s online-enabled application or platform to connect with
passengers in the state pursuant to the TNC license of the TNC. However, this term does not include any individual, who, with respect to the provision of services through a TNC’s online-enabled application or platform, is determined by a final order of a court of competent jurisdiction or the National Labor Relations Board, or declared by a TNC to be a person who is an employee within the meaning of Section 152(3) of Title 29 of the United States Code or within the meaning of Section 31.3121(d)-1 or Section 31.3401(c)-1 of Title 26 of the Code of Federal Regulations.
(k)“Transportation network company driver organization” or “TNC driver organization” means an organization that has all of the following characteristics:
(1)The organization has engaged in advocacy for drivers who transport passengers in California, or is affiliated with an organization that has engaged in advocacy for drivers who transport passengers in California, for a minimum of five years.
(2)The organization has experience, or is affiliated with an organization that has experience, in negotiating collective bargaining agreements and representing workers under those agreements, including the representation of workers in filing unfair labor practice charges and in grievance proceedings.
(3)The organization has as one of its main purposes the
representation of workers in their labor relations.
(4)The organization’s bylaws or other internal governing documents will give TNC drivers the right to be members of the organization and to participate in the democratic control of the organization if the bargaining unit chooses to be represented by the organization.
(5)The organization is not sponsored by, dominated by, or controlled by a transportation network company.
(6)The organization is not a company union.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
Once the board determines that a TNC driver organization is the certified driver bargaining organization for the bargaining unit, the board shall notify all covered TNCs, and all covered TNCs as defined in subdivision (e) of Section 7470.2 shall be required to bargain with the certified driver bargaining organization concerning
matters within the scope of representation.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
For purposes of this chapter, the term “scope of representation” shall mean TNC driver earnings, benefits, and other terms and conditions of work, including deactivations, which shall be mandatory subjects of bargaining.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
Each individual covered TNC shall retain exclusive control over the development, maintenance, design, pricing, and implementation of its product and product features, software, contract terms, algorithm, and operations and areas of service.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)A sectoral agreement submitted to the board for approval shall address, at minimum, the following subjects, each of which must be set forth separately in the sectoral agreement, unless a subject is expressly waived by mutual agreement of the certified driver bargaining organization and the covered TNCs:
(1)Appeals process for deactivations.
(2)Representation of TNC drivers in deactivation appeals.
(3)Paid leave.
(4)Information disclosed to TNC drivers about trips on per-trip, weekly, and monthly earnings receipts and summaries, and on
initial ride offers.
(5)Grievance and arbitration procedures to resolve disputes arising under the sectoral agreement.
(6)Grievance and arbitration procedures to resolve disputes about whether a TNC driver has received the mandatory compensation or benefits required by Chapter 10.5 (commencing with Section 7448).
(7)Safety mandates imposed by the covered TNCs that require TNC drivers to purchase safety equipment or purchase safety software, and safety features or protocols proposed by the certified driver bargaining organization that have a demonstrable purpose of reducing the risk of physical assault or injury to TNC drivers. For the purposes of this paragraph, “purchase” includes an automatic withdrawal from TNC driver earnings.
(8)Labor-TNC
partnerships.
(9)Reasonable access by the certified driver bargaining organization to covered TNC-TNC driver communication systems.
(10)Deduction of voluntary fees and dues from payments to TNC drivers.
(11)Contributions or fees for a separate fund for the administration of benefits and services to TNC drivers including for TNC driver representation in deactivation appeals and other related activities.
(12)Duration of the sectoral agreement, which shall be between three and five years.
(b)A sectoral agreement, including an agreement recommended by an arbitrator pursuant to Section 7470.14, may address subjects beyond the required subjects set forth in subdivision (a), including
provisions for earnings and benefits above the minimums guaranteed to TNC drivers by Chapter 10.5 (commencing with Section 7448). These additional subjects shall be addressed in separate provisions of the sectoral agreement and are subject to nonbinding recommendations as set forth in Section 7470.14.
(c)A sectoral agreement, including an agreement recommended by an arbitrator pursuant to Section 7470.14, shall not contain a provision that does any of the following:
(1)Reduces the minimum guarantees provided to TNC drivers by Chapter 10.5 (commencing with Section 7448).
(2)Restrains TNC drivers’ flexibility to choose work opportunities as protected by Section 7451.
(3)Alters or purports to alter the legal status of TNC drivers as independent
contractors as established by Section 7451.
(4)Prevents an individual covered TNC from exercising its autonomy pursuant to Section 7470.12.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)After the board notifies the covered TNCs of the board’s determination that a specified TNC driver organization is the certified driver bargaining organization for the bargaining unit, that TNC driver organization or those covered TNCs may request to begin negotiations.
(b)(1) All TNCs
that are covered TNCs pursuant to Section 7470.5, their agents or representatives, and the certified driver bargaining organization shall have an obligation to negotiate in good faith to reach a sectoral agreement that will apply to all covered TNCs pursuant to this chapter.
(2)Covered TNCs may form a multicompany committee for purposes of collective bargaining. If covered TNCs do not form a multicompany committee pursuant to this paragraph, then the certified driver bargaining organization may require all covered TNCs to bargain within the certified driver bargaining organization together, and an individual covered TNC shall not object to such a requirement to bargain in concert with other covered TNCs.
(3)A sectoral agreement shall be approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.
(4)For purposes of this subdivision, “to negotiate in good faith” means the performance of the mutual obligation of the covered transportation network companies or their agents or
representatives and the certified driver bargaining organization to meet at reasonable times and negotiate in good faith with respect to subjects within the scope of representation and to execute a written contract incorporating any agreement reached if requested by either party. However, this mutual obligation does not compel either party to agree to a proposal or require the making of a concession.
(c)If the certified driver bargaining organization and covered TNCs reach a recommended
sectoral agreement for the bargaining unit, the recommended agreement shall be ratified pursuant to the certified driver bargaining organization’s procedures. The recommended agreement shall then be submitted to the board for review and approval or disapproval. If the recommended agreement is not ratified according to the certified driver bargaining organization’s procedures, the certified driver bargaining organization and covered TNCs shall resume
bargaining.
(d)(1) If there has been no prior sectoral agreement under this chapter, covered TNCs or the certified driver bargaining organization may file with the board, at any time following 210 days after an initial request to bargain, a petition requesting that the board issue an order referring the parties to mediation of their issues. The parties may also jointly file a petition requesting referral to mediation at any time after the commencement of bargaining. Upon receipt of a petition, the board shall promptly refer the parties to mediation.
(2)If the
parties have not agreed upon a mediator, the board shall, within seven days of receiving the petition, obtain from the California State Mediation and Conciliation Service (CSMCS) a list of nine qualified, disinterested mediators who have experience in labor mediation and submit it to the parties. A representative of the covered TNCs and a representative of the certified driver bargaining organization shall alternately strike from the list one of the names. The order of striking shall be determined by lot until one name remains. The remaining person shall be
designated as the mediator. In the event the parties are unable to select the mediator within 15 days following receipt of the list from the board because a party refuses to strike names, the board shall appoint the mediator from the list provided by CSMCS.
(3)The parties shall have a duty to participate in good faith in mediation.
(4)If the certified driver bargaining organization and the covered TNCs reach a recommended sectoral agreement for the industry through mediation, the approval process described in subdivision (c) shall apply.
(5)Communications and documents exchanged pursuant to mediation
shall be inadmissible in any official, regulatory, or judicial proceeding, consistent with Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code.
(e)(1) Within 30 days after a dispute has been referred to mediation, the parties shall select a prospective arbitrator to resolve the dispute if mediation is unsuccessful. If the parties have not agreed upon an arbitrator within 30 days, the covered TNCs and the certified driver bargaining organization each shall propose three arbitrators to the board and the board shall propose three arbitrators from the American Arbitration Association roster who have at least 10 years of
experience conducting labor arbitrations in California, have interest arbitration experience, and are members of the National Academy of Arbitrators. The certified driver bargaining organization and the covered TNCs shall select an arbitrator within seven days of receipt of the combined list from the board. The parties may mutually select an arbitrator who is not on the list. If the parties cannot agree on an arbitrator, each side shall alternatively strike from the list one of the names until an arbitrator is chosen by process of elimination. The board shall determine by lot which side shall strike first. If either side refuses to propose arbitrators for the list or to participate in selecting an arbitrator within 15 days following receipt of the list from the board, the board shall appoint the arbitrator from the original list proposed by the board.
(2)If the mediator is unable to achieve agreement between the parties concerning an appropriate resolution within 75 days of appointment of the mediator or within 60 days after the first meeting of the parties with the mediator, whichever occurs first, either the certified driver bargaining organization or the covered TNCs may petition the board to refer the dispute for resolution through arbitration. The parties may also jointly file a petition requesting referral of the dispute to arbitration at any time after the commencement of bargaining. Upon a filing of such a petition, the board shall refer the dispute to the
arbitrator for resolution.
(3)(A) The arbitrator shall hold hearings on all matters related to the dispute. The parties may be heard and represented by counsel or by other representatives, as the parties may designate. The arbitrator shall determine the order of presentation by the parties and shall have discretion and authority to decide all procedural issues that may be raised. At the mutual request of the parties, the arbitrator may meet
directly with the parties to attempt to mediate the dispute.
(B)The TNCs and the certified driver bargaining organization shall each be responsible for 50 percent of the cost of the arbitrator or mediator. The board shall have the authority to apportion costs among TNCs based on market share if the TNCs cannot agree to apportion costs among themselves.
(C)The parties may present, either orally or in writing, or both, statements
of fact, supporting witnesses and other evidence, and arguments of their respective positions.
(D)The arbitrator shall have the authority to require the production of additional oral or written evidence from the parties. The arbitrator shall provide, at the request of either party, that a full and complete record be kept of any hearings, with the cost of the record borne by the requesting party. If such a record is created, it shall be shared with all parties, regardless of the party that paid for it.
(E)Within 90 days of the
first meeting of the parties with the arbitrator or 105 days after appointment of the arbitrator, whichever occurs first, the arbitrator shall make a just and reasonable determination of the matters in dispute, and shall issue a recommended sectoral agreement that resolves all disputed issues. The time period for the arbitration proceedings may be extended by the arbitrator upon good cause shown, or by agreement, by the parties.
(F)In issuing a recommended sectoral agreement, the arbitrator shall specify the basis for their findings, taking into consideration the following factors:
(i)The positions of the parties.
(ii) The conditions of similar workers.
(iii) Whether the terms of the recommended agreement achieve the policy goals set forth in Section 7470.1, including, but not limited to, the improvement of working
conditions and the improvement or provision for the prompt resolution of disputes between covered TNCs and TNC drivers.
(iv) If the covered TNCs claim an inability to pay for the certified driver bargaining organization’s demands, the financial ability of the covered TNCs to pay for the requirements set forth in the recommended agreement.
(v)The impact of the recommended agreement on the delivery of services provided by TNCs.
(vi) Whether the recommended agreement would have a discriminatory impact on smaller TNCs or new entrants to the industry.
(vii) Any other factors recommended by the parties that the arbitrator finds to be consistent with this
chapter.
(G) The sectoral agreement recommended by the arbitrator shall contain all of the following:
(i)Terms on which the parties have mutually agreed.
(ii) Binding recommendations on all minimum subjects set forth in subdivision (a) of Section 7470.13 that have not been waived.
(iii) Nonbinding recommendations on all other matters submitted for dispute resolution within the scope of representation.
(H) After receipt of the recommended sectoral agreement, the covered TNCs shall have 10 days to notify the certified driver bargaining organization as to whether the covered TNCs accept the recommended sectoral agreement in its entirety, including the nonbinding recommendations. If the covered TNCs accept the recommended sectoral agreement in its entirety, the recommended sectoral agreement shall be submitted to the board for review and approval or disapproval.
(I) The certified driver bargaining organization
and the covered TNCs may also mutually agree to modify the recommended sectoral agreement and submit a modified sectoral agreement, in whole, to the board for review and approval or disapproval within 15 days after receiving the recommended sectoral agreement.
(J) (i) If, within 10 days of receiving the recommended sectoral agreement, the covered TNCs have not accepted the recommended sectoral agreement, and within 15 days of receiving the sectoral agreement the parties have not agreed upon a modified sectoral agreement, the certified driver bargaining organization may, within 20 days of receiving the recommended sectoral agreement, submit the proposed sectoral agreement without the nonbinding recommendations to the board for review and approval. Notwithstanding the submission of the modified sectoral agreement for approval, or the approval of the modified sectoral agreement, the parties shall have a duty to continue to
bargain in good faith to reach agreement on the subjects addressed by the nonbinding recommendations.
(ii) If the certified driver bargaining organization does not elect to submit a proposed sectoral agreement to the board pursuant to clause (i), the parties shall have a duty to continue to bargain in good faith over the items in dispute to reach agreement on a new sectoral agreement for submission to the board.
(iii) The certified driver bargaining organization and the covered TNCs may, at any time, mutually submit a new proposed sectoral agreement to the board for review and approval or disapproval, and such an agreement may include modifications to any of the terms of the binding recommendations.
(K) The time periods set forth in this section may be extended by mutual agreement of the certified driver bargaining
organization and the covered TNCs.
(L) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.
(f)Following an initial sectoral
agreement, all subsequent negotiations for all subsequent agreements shall begin at least 180 days before the current agreement expires. For all subsequent agreements, either the covered TNCs or the certified driver bargaining organization may, at any time after 180 days after the commencement of negotiations, petition the board to refer the parties to mediation. Except as provided in this subdivision, the timelines and procedures for mediation and arbitration for subsequent agreements shall be as provided in this section. The terms of a
sectoral agreement shall remain in effect, including, but not limited to, any grievance and arbitration provisions and any provisions governing the deduction and transmittal of membership dues, until a new agreement is approved by the board.
(g)For purposes of this section, any decision is binding on all covered TNCs if approved by covered TNCs that include at least 80 percent of the industry, as measured by rideshare volume on the most recent quarterly report filed with the board, and that include at least the two largest covered TNCs.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)A TNC that was not a covered TNC when a sectoral agreement took effect but whose rideshare volume in a later quarter brings it within the 95-percent threshold identified in Section 7470.5 shall become a covered TNC, and therefore bound by all terms of the sectoral agreement immediately, unless exempted pursuant to subdivision (c).
(b)A TNC that becomes a covered TNC pursuant to this section shall remain a covered TNC for the remaining term of the sectoral agreement.
(c)(1) If a TNC that would otherwise become a covered TNC under subdivision (a) obtains a preliminary injunction, final court order, or other legal or regulatory order that exempts
such covered TNC from any provision of the sectoral agreement, that TNC shall not be bound by the enjoined provision, pending final resolution of the litigation, or the resolution of emergency negotiations as provided in this section, whichever is earlier. All other provisions of the agreement shall continue to apply to all covered TNCs.
(2)Within three business days of receiving notice of such injunction or order, the board shall convene the certified driver bargaining organization and all covered TNCs for emergency negotiations aimed solely at revising the provision or provisions deemed unlawful as applied to the objecting TNC. Emergency negotiations under this subdivision shall neither reopen nor impair any agreement terms not directly related to the provision or provisions held unlawful.
(3)Any agreement reached under this subdivision must be approved by covered TNCs that
include at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that include at least the two largest covered TNCs, unless the 80-percent requirement is itself adjudged unlawful as to any covered TNC, in which case the revised provision shall require the unanimous agreement of all covered TNCs.
(4)Any agreement resulting from emergency negotiations must be reviewed and approved or disapproved by the board, in accordance with the requirements of Section 7470.17, within 14 calendar days after the end of emergency negotiations.
(5)If emergency negotiations do not produce an agreement approved by the necessary parties for submission to the board within 30 days, either the certified driver bargaining organization or any nonobjecting TNC may rescind the sectoral agreement by notifying the board within 10 days of the
expiration of the 30-day period. Upon rescission of the sectoral agreement, the certified driver bargaining organization and all covered TNCs shall have a duty to bargain in good faith for a new sectoral agreement pursuant to Section 7470.10. If neither the certified driver bargaining organization nor any nonobjecting TNC rescinds the sectoral agreement, the sectoral agreement shall remain in effect except for any provision or provisions deemed unlawful as applied to the objecting TNC.
(6)If a sectoral agreement is rescinded pursuant to paragraph (5), the certified driver bargaining organization and any covered TNC or group of covered TNCs may enter into an agreement consistent with Section 7470.13 that shall be effective until a new sectoral agreement is approved. That agreement shall be submitted to the board for approval or disapproval pursuant to Section 7470.17 but, upon approval by the board, such an agreement shall only be effective as
to the TNCs that have approved the agreement.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)When a sectoral agreement is in effect, any TNC that is not a covered TNC for purposes of Section 7470.5 may choose to become bound to the sectoral agreement by providing written notice to the board, the certified driver bargaining organization, and the covered TNCs. A TNC that chooses to become bound to a sectoral agreement pursuant to this section shall be bound for the remaining term of the agreement. Such a TNC shall not, on account of its exercise of the option provided by this section, become a covered TNC for purposes of negotiation of subsequent sectoral agreements or coverage by subsequent sectoral agreements.
(b)It shall be unlawful for any TNC that is not a covered TNC nor voluntarily bound by the terms of the sectoral
agreement as provided by this section to make any statement, advertisement, or imply in any official communication that such TNC is bound by the terms of the sectoral agreement.
(c)During the time that a noncovered TNC is bound by the terms of the sectoral agreement pursuant to this section, the certified driver bargaining organization shall represent the TNC drivers who drive for the noncovered TNC for purposes of this chapter. The noncovered TNC shall have the same obligations as a covered TNC to provide information to the board necessary to administer this chapter and to provide information to the certified driver bargaining organization necessary for representation of the TNC drivers.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)After a sectoral agreement has been approved by the parties or recommended by an arbitrator, the agreement shall be submitted to the board for approval or disapproval.
(b)The general counsel of the board shall review the proposed agreement to determine whether:
(1)The agreement addresses the mandatory subjects established in subdivision (a) of Section 7470.13 that were not mutually waived.
(2)The agreement does not contain any terms prohibited by subdivision (c) of Section 7470.13.
(3)The agreement advances the public policy goals stated
in Section 7470.1.
(4)The agreement will not have anticompetitive effects on the industry beyond those contemplated by this act.
(5)The agreement was the product of fair, arm’s-length negotiation or arbitration under the procedures of this chapter.
(c)The general counsel has the right to gather and consider any necessary additional evidence, including by requesting additional information from the certified driver bargaining organization and the covered TNC, to review the proposed agreement.
(d)The general counsel shall issue a recommended determination as to whether the agreement should be approved or disapproved. If the general counsel recommends that the agreement be disapproved, the general counsel shall provide reasons for the disapproval and
identify any provisions that the general counsel determined were not consistent with the standards in subdivision (b). If the general counsel recommends approval of the agreement, the general counsel shall provide a written opinion identifying the reasons for the approval. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.
(e)The general counsel’s recommendation shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.
(f)If a final order of the board disapproves of the proposed sectoral agreement, the certified driver bargaining organization and covered TNCs shall bargain in good faith to reach agreement on a revised sectoral agreement for submission to the board. If
the proposed sectoral agreement was recommended by an arbitrator or modified by the parties after an arbitrator recommended a sectoral agreement, either the certified driver bargaining organization or the covered TNCs may request that the board remand the matter to the arbitrator for resolution of any disputes and the issuance of a revised recommended sectoral agreement for submission to the board. A revised agreement shall be submitted to the board for review pursuant to this section.
(g)(1) If the proposed sectoral agreement includes binding terms that were recommended by an arbitrator and not mutually accepted by the certified driver bargaining organization and covered TNCs, the general counsel shall recommend disapproval of the proposed agreement if a party demonstrates that the arbitrator’s recommendations were procured by corruption, fraud, or other undue means, there was corruption by the arbitrator, the rights of
the party were substantially prejudiced by the misconduct of the arbitrator, or the arbitrator’s recommendation was arbitrary or capricious in light of the record. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.
(2)The general counsel’s recommendation pursuant to this subdivision shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.
(3)If a final order of the board disapproves a proposed agreement pursuant to this subdivision, the parties shall bargain in good faith to reach agreement on a sectoral agreement for submission to the board. Either side may request that the board conduct a new process to select a new arbitrator and refer the parties to arbitration
pursuant to Section 7470.14.
(h)Upon approval of a sectoral agreement by the final order of the board, the agreement shall be final and binding on the certified driver bargaining organization and the TNC drivers it represents and on all covered TNCs. The terms of the agreement shall thereby become enforceable commitments for each covered TNC to implement with respect to TNC drivers. Each covered TNC shall adhere to the terms as minimum standards for all TNC drivers using its platform in the state for the duration of the agreement. In the event of any conflict between an approved sectoral agreement and a term of service or contract between an individual TNC driver and a covered TNC, the sectoral agreement shall prevail for covered matters, except that nothing in the sectoral agreement shall reduce rights or benefits already secured by law or individual contract.
(i)During the
term of a sectoral agreement, the agreement may be reopened, amended, or modified by mutual agreement of the certified driver bargaining organization and the covered TNCs. Any such amendments or modifications must be submitted to the board for approval or disapproval pursuant to this section and shall become effective only upon approval of the board.
(j)For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
(a)It shall be an unfair practice for a TNC, an agent of a TNC, or a multicompany committee to do any of the following:
(1)Fail or refuse to provide the board with a list containing the information required by subdivision (a) of Section 7470.6
or subdivision (c) of Section 7470.9 or any other information required by this act, or knowingly provide an inaccurate list or inaccurate information.
(2)Fail or refuse to negotiate in good faith with a certified driver bargaining organization, as required by this act.
(3)Fail or refuse to provide a certified driver bargaining organization with information required by the organization that is relevant and necessary in discharging its representational duties or in exercising its right to represent TNC drivers regarding terms and conditions of work within the scope of
representation, as established in this act.
(4)Dominate or interfere with the formation, existence, or administration of any TNC driver organization, or contribute financial or other support to any such organization, whether directly or indirectly, unless required by this act or other law, by any regulations implementing this act or other law, or as a result of a
sectoral agreement approved by the
board, including, but not limited to, by doing any of the following:
(A)Participating or assisting in, supervising, or controlling the initiation or creation of any such organization or the meetings, management, operation, elections, or formulation or amendment of the organization’s constitution, rules, or policies.
(B)Offering incentives to TNC drivers to join any such organization.
(C)Donating free services, equipment, materials, offices, meeting space, or anything else of value for use by any such organization, unless those items have been negotiated as a benefit or service for TNC drivers in a
sectoral agreement approved by the
board. However, a covered TNC may permit TNC drivers to perform representational work protected under this act during working hours without loss of time or may allow agents of a certified driver bargaining organization to meet with drivers on its premises or communicate with TNC drivers using the covered TNC’s platform.
(5)Require a TNC driver to join any company union or TNC driver organization or requiring a TNC driver to refrain from forming, joining, or assisting a TNC driver organization of their choice.
(6)Encourage or discourage membership in
any company union or in any TNC driver organization by discriminating with regard to any term or condition of work.
(7)Discharge, deactivate, or otherwise discriminate with regard to the ability of a TNC driver to obtain rides, or otherwise discriminate against a TNC driver, because they have signed or filed any affidavit, petition, or complaint under this chapter, have given any information or testimony under this chapter, have participated or declined to participate in a TNC driver organization, or have exercised any rights under this chapter.
(8)Distribute or circulate any blacklist of individuals exercising any right created or confirmed by this chapter or of members of a TNC driver organization, or inform any person of the exercise by any individual of that right or
of the membership of any individual of a TNC driver organization for the purpose of preventing those blacklisted or named individuals from obtaining or retaining opportunities for remuneration.
(9)Interfere with, restrain, or coerce TNC drivers in the exercise of rights guaranteed by Section 7470.3 or in any other way violate this chapter.
(b)It shall be an unfair practice for a TNC driver organization or its agents to do any of the following:
(1)Restrain or coerce either of the following:
(A)TNC drivers in the exercise of rights guaranteed in Section 7470.3. This subparagraph shall not impair the right of a TNC driver organization or certified driver bargaining organization to prescribe its own rules with respect to the acquisition or retention of membership therein or with respect to TNC drivers’ financial contributions to a TNC driver organization or a certified
driver bargaining organization.
(B)A covered TNC or multicompany committee in its selection of representatives for purposes of bargaining or the adjustment of grievances.
(2)Cause or attempt to cause a TNC or its agent or representative to violate subdivision (a).
(3)Fail or refuse to negotiate in good faith with a covered TNC or multicompany committee as required by this chapter, provided it is the certified driver bargaining organization.
(4)Fail or refuse to provide information requested by a covered TNC or its representative that is relevant and necessary for purposes of bargaining regarding terms and conditions of work within the scope of representation, as established by this chapter, provided that it is the certified driver bargaining organization.
(5)Fail or refuse to fulfill its duty of fair representation toward TNC drivers where it is the certified driver bargaining organization by acts or omissions that are arbitrary, discriminatory, or in bad faith.
(c)The unfair
practice procedures in Chapter 1 (commencing with Section 31001) of Division 3 of Title 8 of the California Code of Regulations shall apply for purposes of this chapter, except to the extent that the board has adopted procedures specific to this act.
(d)A party filing an unfair practice charge under this section may petition the board to seek injunctive relief on behalf of the charging party, pending a decision on the merits of the charge by the board. The board may also petition the appropriate superior court for that relief in accordance with Section
3563 of the Government Code or any regulation adopted thereunder.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
Any meeting of a mediator or arbitrator with any party or group or both parties or groups to the negotiations process and the mediation and arbitration processes set forth in Section 7470.14 is exempt from the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
The provisions of this chapter are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this chapter is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this chapter. The people of the State of California hereby declare that they would have adopted this chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid.
Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.
The board may also adopt, amend, or repeal all rules and regulations necessary to carry out this chapter as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption, amendment, or repeal of regulations pursuant to this chapter shall be deemed necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.