California and Illinois recently advanced state-administered labor relations models that operate outside the traditional framework of the National Labor Relations Act.
This alert summarizes these developments in each state and provides considerations for employers.
California
Since the Transportation Network Company Drivers Labor Relations Act was enacted in 2025, California has allowed rideshare drivers to organize and bargain collectively on a statewide basis while preserving the independent contractor model established under Proposition 22.
In August 2026, the California Public Employment Relations Board (PERB) determined that the California Gig Workers Union (CGWU) had obtained sufficient support to qualify for certification without an election.
On September 9, 2026, following the statutory challenge period, PERB certified CGWU as the exclusive bargaining representative for covered drivers.
As the certified driver bargaining organization, CGWU is authorized to negotiate with covered rideshare companies on matters including driver earnings, benefits, deactivation processes, and other terms and conditions of work. Any resulting industrywide agreements are subject to regulatory oversight and approval by the PERB.
Illinois
Illinois recently enacted the Transportation Network Driver Labor Relations Act, which establishes a statewide bargaining unit for rideshare drivers and creates a process through which an exclusive bargaining representative may be certified.
Once a representative is certified, the law requires covered rideshare companies to negotiate on a range of issues, including compensation, paid leave, benefits, earnings transparency, safety measures, and deactivation procedures. In addition, it introduces mediation and arbitration mechanisms to resolve bargaining disputes and establishes funding arrangements to support implementation of the framework.
These developments build on Massachusetts' adoption of a comparable system, which resulted in the certification of a rideshare driver representative in May 2026.
Considerations for employers
Collectively, the actions in California, Illinois, and Massachusetts reflect a changing state-level approach to labor relations that grants collective bargaining rights to rideshare drivers without requiring them to be classified as employees under federal labor law.
Employers that rely heavily on independent contractor workforces are encouraged to monitor relevant developments.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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