If you drive for Uber, Lyft, or DoorDash in California, you must have heard of AB5 a lot. It has been treated as a hot topic for so many years. And in 2026, more changes are being seen again. For you, that can mean your day-to-day routine is affected in so many small ways.
What Is AB5?
AB5 is a California law passed in 2019 that set new rules for how workers are classified. Before AB5, workers at gig companies like Uber, Lyft, and DoorDash were called independent contractors. With that label, health insurance was not provided, and sick days were not included. Paid time off was also not given.
AB5 said that wasn’t fair. It established the “ABC test.” To call someone a contractor, a company needs to prove three things: the worker is free from the company’s control; the work the person does is not the main thing the company does; and the worker has their own independent business in that field.
Uber and Lyft clearly failed that test. Their whole business is rides. DoorDash’s whole business is deliveries. The workers are the product.
Then, Prop 22 Showed Up
AB5 was not accepted without a fight by big gig companies. Uber, Lyft, and DoorDash funded a ballot campaign with over $200 million. Proposition 22 was passed by California voters in 2020.
Prop 22 carved out a special exception. App-based drivers and delivery workers stayed independent contractors, but the companies had to offer a minimum earnings floor, some health care help, and accident coverage.
Many drivers felt it wasn’t enough, even as some liked the flexibility. It remains a split opinion.
What’s New in 2026
AB 1340 was signed into law in California in late 2025. Then, in January 2026, union rights were given to around 800,000 rideshare and delivery drivers in California. Drivers can now vote to form a union, with the earliest possible vote happening in May 2026. The Service Employees International Union has already started reaching out to drivers at airports and on social media.
Why Did Uber and Lyft Agree?
The rideshare companies dropped their opposition to AB 1340, but they received something in return. Senate Bill 371 cut the insurance they’re required to carry per incident from $1 million down to $300,000.
Lorena Gonzalez, who originally wrote AB5, said it was a trade-off.
What This Means for Drivers in LA
If you are driving in Los Angeles right now, you are still classed as an independent contractor under Prop 22. You are now given the right to unionize under AB 1340, and a union vote could be held as early as May 2026. Better pay and conditions may be gained, but time is needed.
The union process will not be finished overnight. Delivery drivers are also included, as DoorDash and similar apps are covered under AB 1340.
The Bigger Picture
AB5 started a fight that is still ongoing. Drivers still want flexibility, and fair pay and basic protections are also being requested. The 2026 updates will not fix everything at once, but for the first time in a long stretch, some power is being placed at the table for drivers in LA.
Frequently Asked Questions
What is the ABC test?
The ABC test, established by AB5, requires a company to prove three things to classify a worker as an independent contractor: the worker is free from the company’s control, the work the person does is not the main thing the company does, and the worker has their own independent business in that field.
What did Proposition 22 do?
Proposition 22, passed by California voters in 2020, carved out a special exception for app-based drivers and delivery workers, allowing them to remain classified as independent contractors while requiring companies to offer a minimum earnings floor, some health care help, and accident coverage.
When could a union vote happen?
A union vote for rideshare and delivery drivers in California could happen as early as May 2026, following the passage of AB 1340 which granted them unionization rights.
As drivers navigate these changes, what role do you believe collective bargaining will play in shaping the future of the gig economy in California?
