Uber and Lyft Drivers Demand Compensation in California Negotiations

California, October 9, 2025

News Summary

California is preparing for pivotal negotiations involving Uber and Lyft as drivers push for compensation related to alleged wage theft. Over 250,000 drivers claim they were denied fair wages and benefits over the last few years. Separate discussions with Lyft are scheduled for April 8, with state negotiations beginning on Monday. These discussions come in response to long-standing legal battles and aim to improve working conditions and ensure fair pay for drivers. Advocates stress the need for a settlement addressing years of lost wages.

California is set to witness crucial negotiations involving Uber and Lyft as drivers demand compensation for years of alleged wage theft. Separate talks with Lyft are scheduled for April 8, while negotiations with the state will begin on Monday and last for two weeks. The discussions aim to address claims from over 250,000 drivers who worked with Uber and Lyft between 2016 and 2020, as reported by Rideshare Drivers United, a California-based organization.

These negotiations follow lawsuits filed by public officials nearly five years ago, accusing Uber and Lyft of withholding billions of dollars in wages and compensation from drivers. The legal battles are a culmination of individual claims by approximately 5,000 drivers who reported having been denied overtime pay, mileage reimbursement, and other employee benefits to the California labor commissioner’s office in 2020.

The issues at hand center around the drivers’ push for a settlement that would compensate them for years of lost wages while also improving working conditions. Key proposals include protections against unjust deactivation from the rideshare platforms and ensuring fair pay standards. These topics are becoming increasingly pertinent in light of findings from the UC Berkeley Labor Center, which indicated that the average hourly earnings for ride-hail drivers were as low as $5.97 without tips, and $7.63 with tips, after expenses and wait times.

This ongoing legal conflict extends back to lawsuits initiated by California’s former Attorney General, Xavier Becerra, along with city attorneys from San Francisco, Los Angeles, and San Diego. The claims focused on accusations that the companies misclassified drivers as independent contractors and engaged in wage theft, resulting in a joint case brought to the San Francisco Superior Court.

An upcoming mediation session with Uber is scheduled for March 31. Importantly, these discussions will cover the period before California’s Proposition 22 was enacted, which allowed Uber, Lyft, and other gig companies to classify drivers as independent contractors. Backed by over $200 million from the gig economy, Proposition 22 was expected to ensure better wages and treatment for independent workers. However, many drivers claim that the anticipated benefits have not been realized, leading to further unrest.

Many Uber and Lyft drivers are struggling financially; for instance, some drivers report that over half of them work long hours merely to meet expenses. Meanwhile, Uber maintains that drivers can earn at least 120% of the minimum wage during active hours and has invested over $1 billion in benefits, including healthcare and accident insurance.

The recent passage of legislation allowing Uber and Lyft drivers to unionize as independent contractors represents a significant compromise between labor unions and gig economy companies. This new law enables drivers to collectively bargain while retaining their independent contractor status, though it does not extend to other gig workers like food delivery drivers. To initiate the unionizing process, drivers need to collect signatures from 10% of active drivers to facilitate representation and potential elections for multiple groups seeking to represent them.

The legislation also imposes responsibilities on Uber and Lyft to provide regular data on active drivers to the state labor board, promoting transparency in driver compensation. Supporters of this reform argue that it empowers drivers and enhances their voice in compensation discussions, while critics worry about inadequate protections concerning data transparency on driver pay and potential limitations on collective actions by drivers.

In response to this situation, rideshare drivers have staged rallies across California advocating for fair compensation and defending their rights against the allegations of wage theft.

FAQ

Chart: Key Features of Rideshare Driver Negotiations

Deeper Dive: News & Info About This Topic

• Los Angeles Times: New Law Allows Ride-Share Drivers to Unionize
• CNN: California Uber and Lyft Union Bill
• FOX LA: Rideshare Drivers’ Unionization Efforts
• The Guardian: Uber and Lyft Drivers’ Wage Theft Settlement
• Wikipedia: Ridesharing

Author: STAFF HERE HOLLYWOOD

The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.