California 2025-2026 Regular Session

California Assembly Bill AB1340

Introduced
2/21/25  
Refer
3/13/25  
Report Pass
4/8/25  
Refer
4/9/25  
Refer
4/10/25  
Report Pass
4/24/25  
Refer
4/24/25  
Refer
5/7/25  
Report Pass
5/27/25  
Engrossed
6/4/25  
Refer
6/5/25  
Refer
6/18/25  
Report Pass
6/19/25  
Refer
6/19/25  
Report Pass
6/25/25  

Caption

Transportation network company drivers: labor relations.

Impact

If enacted, AB 1340 will amend existing laws to ensure that TNCs and driver organizations must engage in good faith negotiations, which could lead to improved working conditions and compensation for drivers. The legislation defines unfair labor practices specifically for TNCs, thereby offering drivers certain protections against employer misconduct. It also designates the Public Employment Relations Board as the enforcing authority, which aligns the oversight of TNC labor relations with traditional public employment labor practices. Overall, this act seeks to ensure that drivers have a clear avenue for representation and negotiation, setting a precedent for labor relations within the evolving gig economy.

Summary

Assembly Bill 1340, known as the Transportation Network Company Drivers Labor Relations Act, aims to enhance the labor rights of drivers working with transportation network companies (TNCs) in California. The bill establishes the right for TNC drivers to organize and engage in collective bargaining, which includes the ability to negotiate terms and conditions of their employment. It sets up a framework for the recognition of driver organizations as authorized representatives and stipulates that TNCs must negotiate in good faith with these organizations. The bill represents a significant shift towards supporting labor rights in the gig economy, potentially reshaping how TNCs operate by mandating structured negotiations and clearer accountability for fair labor practices.

Sentiment

Overall sentiment surrounding AB 1340 appears to be quite supportive among labor advocates and those in favor of workers' rights. Proponents view it as a positive step towards granting essential rights to gig workers traditionally lacking representation. However, some TNC organizations express concern about the possible implications this bill may have on their operational flexibility and cost structures. The discourse indicates a larger debate about fairness in gig work versus the economic realities faced by TNCs.

Contention

One point of contention highlighted in discussions about AB 1340 is the balance between ensuring fair labor practices and the potential impact on the economic viability of TNCs. Opponents argue that the burden of compliance and increased operational costs may discourage smaller TNCs or new entrants from entering the market, potentially leading to higher fares and reduced service availability. Furthermore, the bill's implications on antitrust laws and competition within the industry remain a hot topic, as it aims to provide a legal framework for sector-wide negotiations that could alter competitive dynamics.

Companion Bills

No companion bills found.

Previously Filed As

CA AB3060

Pupil transportation: transportation network companies: Public Utilities Commission: safety standards: exemptions.

CA SB429

Transportation network companies: participating drivers: vehicle inspections.

CA AB711

Transportation network companies: participating drivers: proof of insurance.

CA SB88

Pupil transportation: driver qualifications.

CA AB504

State and local public employees: labor relations: strikes.

CA AB113

Agricultural labor relations.

CA SB113

Agricultural labor relations.

CA AB594

Labor Code: alternative enforcement.

CA AB1278

Workers’ compensation: medical provider networks.

CA SB1031

San Francisco Bay area: local revenue measure: transportation improvements.

Similar Bills

MA H4253

Giving transportation network drivers the option to form a union and bargain collectively

CA AB378

Childcare: family childcare providers: bargaining representative.

CA AB2850

Public transit employer-employee relations: San Francisco Bay Area Rapid Transit District.

VA HB2764

Collective bargaining by public employees; exclusive bargaining representatives.

VA SB917

Collective bargaining by public employees; exclusive bargaining representatives.

CA AB1

Collective bargaining: Legislature.

VA HB1001

Collective bargaining by public employees; labor organization representation.

VA SB374

Collective bargaining by public employees; labor organization representation.