Legislation
Business and Professions Code (as amended by AB 1340)
- Country
- United States
- Jurisdiction
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State (State of California)
- Authority
- California State Legislature
- Legislation type
- Statutory act
- Binding
- Yes
- Source
- Visit page
- Date of adoption
- Legal Status
- In force
- Platform(s)
- Location-based (All)
Summary
This amendment to the California Business and Professions Code, introduced through Assembly Bill No. 1340 (Chapter 335, 2025), establishes a legal framework for collective representation and bargaining of transportation network company (TNC) drivers. It sets procedures for certification of driver organisations, negotiation of sectoral agreements, and regulatory oversight, while preserving the independent contractor status of TNC drivers.
Additional provisions may be included in the original Code that are not covered in this summary. For complete information, please refer to the full text of the Code.
Thematic areas
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7470.10. 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.
7470.14. (...) (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. -
7470.13. (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). (…)
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7470.9. (...) (c) The certified driver bargaining organization shall be entitled to receive from the board, on a quarterly basis, within three weeks after the end of each calendar quarter, the lists of TNC drivers provided by the covered TNC to the board pursuant to Section 7470.6. The covered TNCs and the certified driver bargaining organization may, by mutual agreement, change the specification of the data that must be included on the list. The specification of the data that will be included on the list shall be within the scope of bargaining. The certified driver bargaining organization may use the information in the list only for the sole purpose of representing TNC drivers as authorized by this chapter and may not provide the information to any third party unless that party is acting as the organization’s agent for purposes authorized by this chapter or administering benefits to drivers pursuant to a bargaining agreement. No other TNC driver organization shall be entitled to receive such a list from the board. Before receiving the list, the certified driver bargaining organization shall certify to the satisfaction of the board that the organization has implemented sufficient data security protection procedures in compliance with applicable data privacy laws, strictly limiting the use of data to what is permitted under this chapter, and establishing clear protocols for data breach notifications. A covered TNC shall not be liable for any damages caused by the certified driver bargaining organization’s or the board’s failure to safeguard the list described in this section from a data or security breach.
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7470.12. 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.
7470.13. (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: (4) Information disclosed to TNC drivers about trips on per-trip, weekly, and monthly earnings receipts and summaries, and on initial ride offers. -
7470.13. (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: (…) (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.
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7470.18. (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: (…) (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.
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7470.13. (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. (…)
7470.18. (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: (…) (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. -
7470.3. (a) TNC drivers have the right to form, join, and participate in the activities of TNC driver organizations, to bargain through representatives of their own choosing, to engage in concerted activities for the purpose of bargaining or other mutual aid or protection, and to refrain from such activities. (…)
7470.18. (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: (…) (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. -
7470.2.(..) (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.
7470.13. (…) (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: (…) (3) Alters or purports to alter the legal status of TNC drivers as independent contractors as established by Section 7451. (…) -
7470.13. (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: (…) (5) Grievance and arbitration procedures to resolve disputes arising under the sectoral agreement.
7470.14. (…) (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. (…) (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.