On April 10, 2025, California legislators introduced Assembly Bill 1340, also known as the Transportation Network Company Drivers Labor Relations Act, which would afford drivers of app-based transportation companies such as Lyft and Uber the right to join a union and engage in concerted activity.

In November 2022, California voters passed Proposition 22, which allowed app-based transportation companies to classify their drivers as independent contractors, rather than employees. As independent contractors, drivers are ineligible for the rights afforded to employees under Section 7 of the National Labor Relations Act. Such rights include the right to organize, form, join, or assist unions, bargain collectively, or work together or on behalf of others to improve their wages, hours, or other working conditions.

Under this new law, however, active app-based transportation company drivers will have similar rights as those afforded under the NLRA. The details of the legislation continue to be ironed out, including what drivers will be considered "active" and therefore entitled to these protections, as well as how the Labor and Workforce Development Agency will enforce this new law.

If passed, app-based transportation companies will be forced to bargain with the certified union selected by the majority of active drivers over other terms and conditions of their work agreements, including compensation, hours, safety practices, and disciplinary procedures. However, there will likely be challenges on the grounds that the new law is preempted by the NLRA.