citation: BPC § 7457

text:
Sexual Harassment Prevention. (a) A network company shall develop a sexual harassment policy intended to protect app-based drivers and members of the public using rideshare services or delivery services. The policy shall be available on the network company’s internet website. The policy shall, at a minimum, do all of the following:

(1) Identify behaviors that may constitute sexual harassment, including the following: unwanted sexual advances; leering, gestures, or displaying sexually suggestive objects, pictures, cartoons, or posters; derogatory comments, epithets, slurs, or jokes; graphic comments, sexually degrading words, or suggestive or obscene messages or invitations; and physical touching or assault, as well as impeding or blocking movements.

(2) Indicate that the network company, and in many instances the law, prohibits app-based drivers and customers utilizing rideshare services or delivery services from committing prohibited harassment.

(3) Establish a process for app-based drivers, customers, and rideshare passengers to submit complaints that ensures confidentiality to the extent possible; an impartial and timely investigation; and remedial actions and resolutions based on the information collected during the investigation process.

(4) Provide an opportunity for app-based drivers and customers utilizing rideshare services or delivery services to submit complaints electronically so complaints can be resolved quickly.

(5) Indicate that when the network company receives allegations of misconduct, it will conduct a fair, timely, and thorough investigation to reach reasonable conclusions based on the information collected.

(6) Make clear that neither app-based drivers nor customers utilizing rideshare services or delivery services shall be retaliated against as a result of making a good faith complaint or participating in an investigation against another app-based driver, customer, or rideshare passenger.

(b) Prior to providing rideshare services or delivery services through a network company’s online-enabled application or platform, an app-based driver shall do both of the following:

(1) Review the network company’s sexual harassment policy.

(2) Confirm to the network company, for which electronic confirmation shall suffice, that the app-based driver has reviewed the network company’s sexual harassment policy.

(c) Claims brought pursuant to this section shall be brought solely under the procedures established by the Unruh Civil Rights Act (Section 51 of the Civil Code) and will be governed by its requirements and remedies.

article: 5. Antidiscrimination and Public Safety


kind: section

code: BPC

citation: BPC § 7458

text:
Criminal Background Checks. (a) A network company shall conduct, or have a third party conduct, an initial local and national criminal background check for each app-based driver who uses the network company’s online-enabled application or platform to provide rideshare services or delivery services. The background check shall be consistent with the standards contained in subdivision (a) of Section 5445.2 of the Public Utilities Code. Notwithstanding any other provision of law to the contrary, after an app-based driver’s consent is obtained by a network company for an initial background check, no additional consent shall be required for the continual monitoring of that app-based driver’s criminal history if the network company elects to undertake such continual monitoring.

(b) A network company shall complete the initial criminal background check as required by subdivision (a) prior to permitting an app-based driver to utilize the network company’s online-enabled application or platform. The network company shall provide physical or electronic copies or summaries of the initial criminal background check to the app-based driver.

(c) An app-based driver shall not be permitted to utilize a network company’s online-enabled application or platform if one of the following applies:

(1) The driver has ever been convicted of any crime listed in subparagraph (B) of paragraph (2) of subdivision (a) of Section 5445.2 of the Public Utilities Code, any serious felony as defined by subdivision (c) of Section 1192.7 of the Penal Code, or any hate crime as defined by Section 422.55 of the Penal Code.

(2) The driver has been convicted within the last seven years of any crime listed in paragraph (3) of subdivision (a) of Section 5445.2 of the Public Utilities Code.

(d) (1) The ability of an app-based driver to utilize a network company’s online-enabled application or platform may be suspended if the network company learns the driver has been arrested for any crime listed in either of the following:

(A) Subparagraph (B) of paragraph (2), or paragraph (3), of subdivision (a) of Section 5445.2 of the Public Utilities Code.

(B) Subdivision (c) of this section.

(2) The suspension described in paragraph (1) may be lifted upon the disposition of an arrest for any crime listed in subparagraph (B) of paragraph (2), or paragraph (3), of subdivision (a) of Section 5445.2 of the Public Utilities Code that does not result in a conviction. Such disposition includes a finding of factual innocence from any relevant charge, an acquittal at trial, an affidavit indicating the prosecuting attorney with jurisdiction over the alleged offense has declined to file a criminal complaint, or an affidavit indicating all relevant time periods described in Chapter 2 (commencing with Section 799) of Title 3 of Part 2 of the Penal Code have expired.

(e) Nothing in this section shall be interpreted to prevent a network company from imposing additional standards relating to criminal history.

(f) Notwithstanding Section 1786.12 of the Civil Code, an investigative consumer reporting agency may furnish an investigative consumer report to a network company about a person seeking to become an app-based driver, regardless of whether the app-based driver is to be an employee or an independent contractor of the network company.

history: (History: Added November 3, 2020, by initiative Proposition 22, Sec. 1. Effective December 16, 2020.)

division: 3. PROFESSIONS AND VOCATIONS GENERALLY

chapter: 10.5. App-Based Drivers and Services

article: 5. Antidiscrimination and Public Safety

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 5. Antidiscrimination and Public Safety


citation: BPC § 7459

text:
Safety Training. (a) A network company shall require an app-based driver to complete the training described in this section prior to allowing the app-based driver to utilize the network company’s online-enabled application or platform.

(b) A network company shall provide each app-based driver safety training. The safety training required by this section shall include the following subjects:

(1) Collision avoidance and defensive driving techniques.

(2) Identification of collision-causing elements such as excessive speed, DUI, and distracted driving.

(3) Recognition and reporting of sexual assault and misconduct.

(4) For app-based drivers delivering prepared food or groceries, food safety information relevant to the delivery of food, including temperature control.

(c) The training may, at the discretion of the network company, be provided via online, video, or in-person training.

(d) Notwithstanding subdivision (a), any app-based driver that has entered into a contract with a network company prior to January 1, 2021, to provide rideshare services or delivery services shall have until July 1, 2021, to complete the safety training required by this section, and may continue to provide rideshare services or delivery services through the network company’s online-enabled application or platform until that date. On and after July 1, 2021, app-based drivers described in this subdivision must complete the training required by this section in order to continue providing rideshare services and delivery services.

(e) Any safety product, feature, process, policy, standard, or other effort undertaken by a network company, or the provision of equipment by a network company, to further public safety is not an indicia of an employment or agency relationship with an app-based driver.

article: 5. Antidiscrimination and Public Safety


citation: BPC § 7460

text:
Zero Tolerance Policies. (a) A network company shall institute a “zero tolerance policy” that mandates prompt suspension of an app-based driver’s access to the network company’s online-enabled application or platform in any instance in which the network company receives a report through its online-enabled application or platform, or by any other company-approved method, from any person who reasonably suspects the app-based driver is under the influence of drugs or alcohol while providing rideshare services or delivery services.

(b) Upon receiving a report described in subdivision (a), a network company shall promptly suspend the app-based driver from the company’s online-enabled application or platform for further investigation.

(c) A network company may suspend access to the network company’s online-enabled application or platform for any app-based driver or customer found to be reporting an alleged violation of a zero tolerance policy as described in subdivision (a) where that driver or customer knows the report to be unfounded or based the report on an intent to inappropriately deny a driver access to the online-enabled application or platform.

article: 5. Antidiscrimination and Public Safety


text: A network company shall make continuously and exclusively available to law enforcement a mechanism to submit requests for information to aid in investigations related to emergency situations, exigent circumstances, and critical incidents.

article: 5. Antidiscrimination and Public Safety


citation: BPC § 7461

text: App-based Driver Rest. An app-based driver shall not be logged in and driving on a network company’s online-enabled application or platform for more than a cumulative total of 12 hours in any 24-hour period, unless that driver has already logged off for an uninterrupted period of 6 hours. If an app-based driver has been logged on and driving for more than a cumulative total of 12 hours in any 24-hour period, without logging off for an uninterrupted period of 6 hours, the driver shall be prohibited from logging back into the network company’s online-enabled application or platform for an uninterrupted period of at least 6 hours.

article: 5. Antidiscrimination and Public Safety


citation: BPC § 7462

text:
Impersonating an App-Based Driver. Any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare or delivery services shall be guilty of a misdemeanor, and is punishable by imprisonment in a county jail for up to six months, or a fine of up to ten thousand dollars ($10,000), or both. Nothing in this subdivision precludes prosecution under any other law.

(b) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission or attempted commission of an offense described in Section 207, 209, 220, 261, 264.1, 286, 287, 288, or 289 of the Penal Code shall be sentenced to an additional term of five years.

(c) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission of a felony or attempted felony and in so doing personally inflicts great bodily injury to another person other than an accomplice shall be sentenced to an additional term of five years.

(d) In addition to any other penalty provided by law, any person who fraudulently impersonates an app-based driver while providing or attempting to provide rideshare services or delivery services in the commission of a felony or attempted felony and in so doing causes the death of another person other than an accomplice shall be sentenced to an additional term of 10 years.

article: 5. Antidiscrimination and Public Safety


citation: BPC § 7463

text:
For purposes of this chapter, the following definitions shall apply:

(a) “App-based driver” means an individual who is a DNC courier, TNC driver, or TCP driver or permit holder; and for whom the conditions set forth in subdivisions (a) to (d), inclusive, of Section 7451 are satisfied.

(b) “Average ACA contribution” means 82 percent of the dollar amount of the average monthly Covered California premium.

(c) “Average monthly Covered California premium” equals the dollar amount published pursuant to subdivision (g) of Section 7454.

(d) “Covered California” means the California Health Benefit Exchange, codified in Title 22 (commencing with Section 100500) of the Government Code.

(e) “Customer” means one or more natural persons or business entities.

(f) “Delivery network company” (DNC) means a business entity that maintains an online-enabled application or platform used to facilitate delivery services within the State of California on an on-demand basis, and maintains a record of the amount of engaged time and engaged miles accumulated by DNC couriers. Deliveries are facilitated on an on-demand basis if DNC couriers are provided with the option to accept or decline each delivery request and the DNC does not require the DNC courier to accept any specific delivery request as a condition of maintaining access to the DNC’s online-enabled application or platform.

(g) “Delivery network company courier” (DNC courier) means an individual who provides delivery services through a DNC’s online-enabled application or platform.

(h) “Delivery services” means the fulfillment of delivery requests, meaning the pickup from any location of any item or items and the delivery of the items using a passenger vehicle, bicycle, scooter, walking, public transportation, or other similar means of transportation, to a location selected by the customer located within 50 miles of the pickup location. A delivery request may include more than one, but not more than 12, distinct orders placed by different customers. Delivery services may include the selection, collection, or purchase of items by a DNC courier provided that those tasks are done in connection with a delivery that the DNC courier has agreed to deliver. Delivery services do not include deliveries that are subject to Section 26090, as that section read on October 29, 2019.

(i) “Engaged miles” means all miles driven during engaged time in a passenger vehicle that is not owned, leased, or rented by the network company.

(j) (1) “Engaged time” means, subject to the conditions set forth in paragraph (2), the period of time, as recorded in a network company’s online-enabled application or platform, from when an app-based driver accepts a rideshare request or delivery request to when the app-based driver completes that rideshare request or delivery request.

(2) (A) Engaged time shall not include the following:

(i) Any time spent performing a rideshare service or delivery service after the request has been canceled by the customer.

(ii) Any time spent on a rideshare service or delivery service where the app-based driver abandons performance of the service prior to completion.

(B) Network companies may also exclude time if doing so is reasonably necessary to remedy or prevent fraudulent use of the network company’s online-enabled application or platform.

(k) “Local government” means a city, county, city and county, charter city, or charter county.

(l) “Network company” means a business entity that is a DNC or a TNC.

(m) “Passenger vehicle” means a passenger vehicle as defined in Section 465 of the Vehicle Code.

(n) “Qualifying health plan” means a health insurance plan in which the app-based driver is the subscriber, that is not sponsored by an employer, and that is not a Medicare or Medicaid plan.

(o) “Rideshare service” means the transportation of one or more persons.

(p) “Transportation network company” (TNC) has the same meaning as the definition contained in subdivision (c) of Section 5431 of the Public Utilities Code.

(q) “Transportation network company driver” (TNC driver) has the same meaning as the definition of driver contained in subdivision (a) of Section 5431 of the Public Utilities Code.

(r) “Charter-party carrier of passengers” (TCP) shall have the same meaning as the definition contained in Section 5360 of the Public Utilities Code, provided the driver is providing rideshare services using a passenger vehicle through a network company’s online-enabled application or platform.

article: 6. Definitions

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 6. Definitions


citation: BPC § 7464

text:
(a) The performance of a single rideshare service or delivery service frequently requires an app-based driver to travel across the jurisdictional boundaries of multiple local governments. California has over 500 cities and counties, which can lead to overlapping, inconsistent, and contradictory local regulations for cross-jurisdictional services.

(b) In light of the cross-jurisdictional nature of the rideshare services and delivery services, and in addition to the other requirements and standards established by this chapter, the state hereby occupies the field in the following areas:

(1) App-based driver compensation and gratuity, except as provided in Section 7453.

(2) App-based driver scheduling, leave, health care subsidies, and any other work-related stipends, subsidies, or benefits.

(3) App-based driver licensing and insurance requirements.

(4) App-based driver rights with respect to a network company’s termination of an app-based driver’s contract.

(c) Notwithstanding subdivision (b), nothing in this section shall limit a local government’s ability to adopt local ordinances necessary to punish the commission of misdemeanor and felony crimes or to enforce local ordinances and regulations enacted prior to October 29, 2019.

article: 7. Uniform Work Standards

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 7. Uniform Work Standards


text:
(a) A network company that is acting as a third-party settlement organization shall prepare an information return for each participating payee who is an app-based driver with a California address that has a gross amount of reportable payment transactions equal to or greater than six hundred dollars ($600) during a calendar year, irrespective of the number of transactions between the third-party settlement organization and the payee. A third-party settlement organization must report these amounts to the Franchise Tax Board and furnish a copy to the payee, even if it does not have a federal reporting obligation. The information return shall identify the following:

(1) The name, address, and tax identification number of the participating payee.

(2) The gross amount of the reportable payment transactions with respect to the participating payee.

(b) Within 30 days following the date such an information return would be due to the Internal Revenue Service, a network company shall file a copy of any information return required by subdivision (a) with the Franchise Tax Board and shall provide a copy to the participating payee.

(c) A network company may fulfill this requirement by submitting a copy of Internal Revenue Service Form 1099-K or by submitting a form provided by the Franchise Tax Board that includes the same information as that on Cal-1099-K.

(d) For purposes of this section:

(1) “Participating payee” has the same meaning as provided in Section 6050W(d)(1)(A)(ii) of Title 26 of the United States Code.

(2) “Reportable payment transaction” has the same meaning as provided in Section 6050W(c)(1) of Title 26 of the United States Code.

(3) “Third-party settlement organization” has the same meaning as provided in Section 6050W(b)(3) of Title 26 of the United States Code.

(e) This section shall not apply in instances where the gross amount of reportable payment transactions for a participating payee in a calendar year is less than six hundred dollars ($600) or where the participating payee is not an app-based driver.

(f) This section shall apply to reportable payment transactions occurring on or after January 1, 2021.

article: 8. Income Reporting

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 8. Income Reporting


citation: BPC § 7465

text:
(a) After the effective date of this chapter, the Legislature may amend this chapter by a statute passed in each house of the Legislature by rollcall vote entered into the journal, seven-eighths of the membership concurring, provided that the statute is consistent with, and furthers the purpose of, this chapter. No bill seeking to amend this chapter after the effective date of this chapter may be passed or ultimately become a statute unless the bill has been printed and distributed to members, and published on the internet, in its final form, for at least 12 business days prior to its passage in either house of the Legislature.

(b) No statute enacted after October 29, 2019, but prior to the effective date of this chapter, that would constitute an amendment of this chapter, shall be operative after the effective date of this chapter unless the statute was passed in accordance with the requirements of subdivision (a).

(c) (1) The purposes of this chapter are described in Article 1 (commencing with Section 7448).

(2) Any statute that amends Section 7451 does not further the purposes of this chapter.

(3) Any statute that prohibits app-based drivers from performing a particular rideshare service or delivery service while allowing other individuals or entities to perform the same rideshare service or delivery service, or otherwise imposes unequal regulatory burdens upon app-based drivers based on their classification status, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b).

(4) Any statute that authorizes any entity or organization to represent the interests of app-based drivers in connection with drivers’ contractual relationships with network companies, or drivers’ compensation, benefits, or working conditions, constitutes an amendment of this chapter and must be enacted in compliance with the procedures governing amendments consistent with the purposes of this chapter as set forth in subdivisions (a) and (b).

(d) Any statute that imposes additional misdemeanor or felony penalties in order to provide greater protection against criminal activity for app-based drivers and individuals using rideshare services or delivery services may be enacted by the Legislature by rollcall vote entered into the journal, a majority of the membership of each house concurring, without complying with subdivisions (a) and (b).

article: 9. Amendment

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 9. Amendment


citation: BPC § 7466

text:
(a) Emergency regulations may be adopted by Covered California in order to implement and administer subdivisions (c) and (g) of Section 7454.

(b) Any emergency regulation adopted pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and, for purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of the regulation is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding any other provision of law, the emergency regulations adopted by Covered California may remain in effect for two years from the date of adoption.

article: 10. Regulations

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 10. Regulations


citation: BPC § 7467

text:
(a) Subject to subdivision (b), the provisions of this chapter are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this chapter is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this chapter. The people of the State of California hereby declare that they would have adopted this chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid.

(b) Notwithstanding subdivision (a), if any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of Section 7451 of Article 2 (commencing with Section 7451), as added by the voters, is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall apply to the entirety of the remaining provisions of this chapter, and no provision of this chapter shall be deemed valid or given force of law.

article: 11. Severability

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.5. App-Based Drivers and Services > 11. Severability


citation: BPC § 7470

text: This chapter shall be known, and may be cited as, the Transportation Network Company Drivers Labor Relations Act.

history: (History: Added by Stats. 2025, Ch. 335, Sec. 1. (AB 1340) Effective January 1, 2026.)

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 10.7. Transportation Network Company Drivers Labor Relations Act


text:
(a) It is the policy of the State of California to encourage and protect the right of transportation network company drivers to full freedom of association, self-organization, and designation of representatives of their own choosing to negotiate the compensation that they receive as well as other terms and conditions of their agreements with transportation network companies.

(b) The benefit to the state’s economy from negotiated agreements between transportation network company drivers and the transportation network companies, including where those agreements are multiparty, sectoral agreements, outweighs the anticompetitive effect of those agreements. It is the state’s intent that the state action antitrust exemption to the application of federal and state antitrust laws shall apply to the activities of transportation network company drivers, transportation network company driver organizations, bargaining representatives for transportation network company drivers, and transportation network companies when they are participating in negotiations and other activities as authorized or regulated by this chapter.

(c) The purposes of this chapter are to provide transportation network company drivers the opportunity to self-organize and designate representatives of their own choosing in order to bargain with transportation network companies, to facilitate the prevention or prompt resolution of disputes between transportation network companies and transportation network company drivers, and to improve the working conditions of transportation network company drivers and therefore the services provided to the general public.

(d) It is the policy of the state to establish various notice requirements, conditions, and timelines governing the representation of transportation network company drivers. It is the policy of the state to require transportation network companies and certified driver bargaining organizations to negotiate in good faith pursuant to the act and to set forth procedures for mediation and arbitration for purposes of reaching a bargaining agreement.

(e) In November 2020, the California voters approved Proposition 22, the “Protect App-Based Drivers and Services Act,” which has been codified in Chapter 10.5 (commencing with Section 7448). That measure establishes certain minimum standards for app-based drivers, while allowing, as the California courts have held, the state to create a system for negotiations between transportation network company drivers and transportation network companies, including, by agreement, to voluntarily increase the standards that were established by Proposition 22. This chapter establishes a robust system to authorize those negotiations, while accommodating Proposition 22, which limits the state’s ability to impose certain terms through the binding interest arbitration process that applies if the parties are otherwise unable to reach an agreement but does not otherwise impose limits on that process.

(f) Because of the nature of the industry, many individuals who perform work as transportation network company drivers have only a short-term or highly intermittent relationship with the industry. For both logistical and policy reasons, this chapter establishes a threshold for eligibility to participate in the selection of a union representative so the choice can be made by those drivers who have more than a casual or short-term relationship with the industry and, therefore, have a more significant interest in making that choice.

chapter: 10.7. Transportation Network Company Drivers Labor Relations Act


text:
For purposes of this chapter, the following definitions apply:

(a) “Active TNC driver” means a transportation network company (TNC) driver who has driven at least the minimum number of rides during the past six months with a covered TNC’s platform in the State of California, as determined by the board pursuant to Section 7470.6.

(b) “Board” means the Public Employment Relations Board established pursuant to Section 3541 of the Government Code.

(c) “Certified driver bargaining organization” means an organization that has been certified by the board as the representative of all TNC drivers in the state for purposes of bargaining pursuant to this chapter.

(d) (1) “Company union” means any committee, worker representation plan, or association of TNC drivers or others that exists for the purpose, in whole or in part, of dealing with TNCs concerning grievances or terms and conditions of work for TNC drivers, for which either or both of the following is true:

(A) A TNC has initiated or created the union, proposed its initiation or creation, participated in the formulation of its governing rules or policies, or participated in or supervised its management, operations, or elections.

(B) A TNC has maintained, financed, controlled, dominated, or assisted in maintaining or financing the union, unless required to do so by this chapter or any regulations implementing this chapter, whether by compensating anyone for services performed on its behalf or by donating free services, equipment, materials, office or meeting space, or anything else of value, or by any other means.

(2) A TNC driver organization shall not be deemed a company union solely because any of the following are true:

(A) It has negotiated or been granted the right to designate TNC drivers to be released with pay for the purpose of providing representational services in labor-management affairs on behalf of TNC drivers represented by the TNC driver organization.

(B) In the course of providing representational services to workers for whom it is the certified driver bargaining organization, a TNC has allowed agents of the TNC driver organization to meet with drivers at the TNC’s premises.

(C) It has received from a TNC the voluntary membership dues deductions of TNC drivers or the TNC has processed or transmitted membership dues pursuant to subdivision (d) of Section 7470.9.

(D) It has received funds from a TNC for the administration of benefits and services to TNC drivers pursuant to a bargaining agreement in its capacity as the certified driver bargaining organization.

(e) “Covered TNC” means a TNC that is a covered TNC based on ride-share volume, as determined pursuant to Section 7470.5.

(f) “Multicompany committee” means a committee formed by multiple TNCs for purposes of bargaining pursuant to this act.

(g) “Scope of representation” has the same meaning as set forth in Section 7470.11.

(h) “Sectoral agreement” means an agreement between covered TNCs and the certified driver bargaining organization that meets the requirements of Section 7470.13 and that, if approved by the board, will apply to all covered TNCs.

(i) “Transportation network company” or “TNC” is a person or company that falls under the definition set forth in subdivision (c) of Section 5431 of the Public Utilities Code. A TNC is covered by this chapter only if it provides prearranged transportation services in the state and connects passengers with TNC drivers and only with respect to those TNC drivers.

(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.

(k) “Transportation network company driver organization” or “TNC driver organization” means an organization that has all of the following characteristics:

(1) The organization has engaged in advocacy for drivers who transport passengers in California, or is affiliated with an organization that has engaged in advocacy for drivers who transport passengers in California, for a minimum of five years.

(2) The organization has experience, or is affiliated with an organization that has experience, in negotiating collective bargaining agreements and representing workers under those agreements, including the representation of workers in filing unfair labor practice charges and in grievance proceedings.

(3) The organization has as one of its main purposes the representation of workers in their labor relations.

(4) The organization’s bylaws or other internal governing documents will give TNC drivers the right to be members of the organization and to participate in the democratic control of the organization if the bargaining unit chooses to be represented by the organization.

(5) The organization is not sponsored by, dominated by, or controlled by a transportation network company.

(6) The organization is not a company union.


text:
(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.

(b) This chapter shall not be interpreted to prohibit TNC drivers from exercising the right to confer with TNCs at any time, provided that during any conference there is no attempt by the TNC, directly or indirectly, to interfere with, restrain, or coerce workers in the exercise of the rights guaranteed by this section.


text:
(a) The board shall enforce this chapter.

(b) The powers and duties of the board, as described in Section 3541.3 of the Government Code, shall also apply to the board’s administration and enforcement of this chapter.

(c) The board may adopt rules and regulations as necessary to implement this chapter.

(d) The board may, where necessary and consistent with the purpose of this act, construe any provision in Section 3541.3 of the Government Code, or a related statute or implementing regulation applicable to the board, referring to “employee” or “employees” to include a “transportation network company driver,” as defined in Section 7470.2, referring to “employee organization” to include a “transportation network company driver organization,” as defined in Section 7470.2, referring to “exclusive representative” to include a “certified driver bargaining organization,” as defined in Section 7470.2, and referring to “employer” to include a “transportation network company,” as defined in Section 7470.2.


text:
(a) (1) In addition to the TNC driver lists required by Section 7470.6 and 7470.9, within two weeks after the end of each calendar quarter, commencing on January 1, 2026, and at the completion of every three months thereafter, each TNC shall electronically submit to the board a single statewide total of the rides performed during the prior quarter by TNC drivers, as defined in Section 7470.2, on its online-enabled application or platform.

(2) The information required by paragraph (1) shall be produced in a manipulable electronic format, such as a spreadsheet program consisting of cells organized by lettered columns and numbered rows with each data point in a separate cell that allows users to sort and perform calculations and analysis. The board may require that the information be provided in a specified software program.

(b) (1) Within 14 days after the deadline in subdivision (a), the board shall total all rides reported pursuant to that subdivision.

(2) The board shall rank all TNCs by rideshare volume in descending order. The board shall begin with the highest ranked TNC and continue down the list until the board has identified the TNCs whose rides collectively equal or exceed 95 percent of the statewide total for the preceding quarter. These TNCs shall be deemed “covered TNCs” for purposes of this chapter.

(3) For purposes of this subdivision, all TNCs under common ownership or control shall be considered to be a single TNC. The board shall publish the list of covered and noncovered TNCs and rideshare volume information on its internet website. The board shall notify each TNC as to whether the TNC is a covered TNC.

(c) (1) If a TNC willfully fails to submit the list required by this section, the board shall promptly issue a complaint charging the TNC with an unfair practice and petition a court of competent jurisdiction for temporary relief to compel production of the list.

(2) In addition to any other remedy provided by law, a TNC found to have committed an unfair practice by failing to submit the list required by this section shall be subject to a civil penalty, payable to the General Fund, not to exceed ten thousand dollars ($10,000) per day for each day after the deadline that the list was not provided. The amount of the penalty shall be determined by the board through application of the following criteria:

(A) The size of the TNC.

(B) The severity of the violation.

(C) Any prior history of violations by the TNC.

(3) In addition to any other remedy provided by law, a TNC found to have committed an unfair practice by failing to submit the list required by this section shall be required by the board to pay the board’s attorney’s fees and costs for any court proceeding initiated by the board to compel production of the list.

(4) The failure of a TNC to submit the list required by this section shall not prevent the board from providing a list of covered and noncovered TNCs to the extent the board concludes that the missing information cannot reasonably be expected to change whether those TNCs are covered or noncovered TNCs.


text:
(a) (1) Within two weeks after the end of each calendar quarter, commencing with the quarter ending on March 31, 2026, each covered TNC shall submit to the board the name, driver’s license number, and, to the extent known by a TNC, the most recent email address, local residence and mailing addresses, cellular telephone number, as well as the TNC driver’s first date joining the platform and the number of rides the TNC driver completed in the previous six months for each TNC driver who has completed at least 20 rides within the State of California within the prior six months.

(2) The list required by paragraph (1) shall be produced in a manipulable electronic format, such as a spreadsheet program consisting of cells organized by lettered columns and numbered rows with each data point in a separate cell that allows users to sort and perform calculations and analysis. The board may require that the list be provided in a specified software program.

(b) Within 14 days of the deadline for submission of the information set forth in subdivision (a) and until a TNC driver organization has been certified as the certified driver bargaining organization, the board shall combine the data provided by covered TNCs and calculate the median number of rides provided by all TNC drivers whose information has been submitted under subdivision (a) and shall prepare a list of all TNC drivers who have completed the median number of rides or more in the past six months. Any TNC driver who completed the median number of rides or more shall be deemed an active TNC driver. The list shall include the information set forth in subdivision (a) and shall designate the covered TNC or covered TNCs the TNC driver has driven for during the prior six months. The board shall take appropriate steps to ensure that TNC drivers who drive for multiple covered TNCs are not listed multiple times but are listed a single time with the relevant covered TNCs designated. An individual covered TNC’s failure to submit the required information shall not relieve the board of its responsibility to timely provide the list required by this subdivision. These records shall not be considered public records under any applicable law.


text:
(a) For purposes of this chapter, the board shall determine if an entity is a TNC driver organization within the meaning set forth in Section 7470.2, as follows:

(1) The board shall designate a 10-day period to occur on or after January 1, 2026, and every three months thereafter, during which an entity must apply to the board in order to be designated as a TNC driver organization or to have its designation renewed.

(2) The general counsel of the board shall have the authority to determine if an entity is a TNC driver organization upon application by that entity. The general counsel shall issue that determination within 10 days of receiving the application.

(3) If the general counsel determines an entity is not a TNC driver organization, the general counsel shall state the reasons for this determination. An applicant determined not to be a TNC may appeal this adverse determination to the board within 30 days of the determination.

(b) Once an entity has been determined to be a TNC driver organization, this determination shall remain valid for two years unless it is determined that the entity no longer meets the definition of a TNC driver organization.

(c) The certified driver bargaining organization shall be presumed to continue to meet the definition of a TNC driver organization without the need to apply for renewal of that determination every two years.


text:
The certification and decertification process for TNC driver organizations shall follow the procedures set forth in this section.

(a) (1) (A) A TNC driver organization may, at any time after May 1, 2026, present to the board proof sufficient to show that at least 10 percent of active TNC drivers have authorized the TNC driver organization to act as their bargaining representative.

(B) Within 30 days of a TNC driver organization request for a board determination under subparagraph (A), the board shall determine whether the organization has been authorized to act as bargaining representative by at least 10 percent of active TNC drivers.

(2) Within 30 days of the board’s determination that a TNC driver organization has presented sufficient proof to satisfy subparagraph (A) of paragraph (1), and on every January 31, April 30, July 31, and October 31 thereafter, the board shall provide the TNC driver organization with the list described in subdivision (b) of Section 7470.6. A TNC driver organization may use the information in the list only for the purposes authorized by this chapter, and shall not provide the information to any third party unless that party is acting as the TNC driver organization’s agent for purposes authorized by this chapter. A covered TNC shall not be liable for any damages caused by the TNC driver organization’s or the board’s failure to safeguard the list described in Section 7470.6 from a data or security breach.

(3) Within 30 days of the board’s determination that a TNC driver organization has presented sufficient proof to satisfy subparagraph (A) of paragraph (1), each covered TNC shall send a notice from the board to its TNC drivers who were on the most recent list submitted by that TNC to the board pursuant to Section 7470.6, in a form determined by the board, that the TNC driver organization is seeking to represent TNC drivers for the purpose of initiating a bargaining process in order to establish terms and conditions for TNC drivers in the industry. The board’s notice shall advise TNC drivers of the threshold for status as an active driver eligible to execute a proof of support. The board’s notice shall be neutral as to whether TNC drivers should support a TNC driver organization.

(4) For six months from the date of the board’s determination that a TNC driver organization has been authorized to act as the bargaining representative by at least ten percent of active TNC drivers, no other TNC driver organization shall be certified as the certified driver bargaining organization of those workers without an election.

(b) (1) (A) A TNC driver organization may, at any time after May 1, 2026, present to the board proof sufficient to show at least 30 percent of active TNC drivers have authorized the TNC driver organization to act as their bargaining representative.

(B) Within 30 days of a TNC driver organization request for a board determination under subparagraph (A), the board shall make a determination as to whether the organization has presented sufficient proof to satisfy subparagraph (A), and if it has, shall certify the TNC organization as the certified driver bargaining organization, subject to paragraph (2).

(2) (A) If a TNC driver organization seeking certification as the certified driver bargaining organization under this subdivision provides evidence that at least 30 percent but less than a majority of active TNC drivers have designated the TNC driver organization to act as their bargaining representative, the board shall wait 30 days before certifying the TNC driver organization as the certified driver bargaining organization. If, during those 30 days, another TNC driver organization provides evidence that at least 30 percent of active TNC drivers have authorized it to act as their bargaining representative, or a TNC driver provides evidence that at least 30 percent of active TNC drivers do not wish to be represented by any TNC driver organization, then the board shall within 60 days hold a representation election among all active TNC drivers.

(B) The election shall be conducted using a remote electronic voting system that must allow both electronic voting from remote site personal computers via the internet and electronic voting from personal or cellular telephones. The system shall not include voting machines used for casting votes at polling sites or electronic tabulation systems where votes are cast nonelectronically but counted electronically, such as punch card voting or optical scanning systems.

(3) If the TNC driver organization provides evidence that a majority of active TNC drivers have designated the TNC driver organization to act as their bargaining representative, then the board shall not wait 30 days nor shall it hold an election before certifying the TNC driver organization as the certified driver bargaining organization.

(c) (1) A TNC driver organization may submit proof of support to the board to demonstrate that TNC drivers have authorized a TNC driver organization to act as their bargaining representative under subdivision (a) or (b). A TNC driver organization may submit any proof of support that complies with Section 32700 of Title 8 of the California Code of Regulations. Valid proof of support shall have been executed by the TNC driver within the two years prior to the date that the TNC driver organization requested the board determination. The fact that the proof of support was executed by the TNC driver before the effective date of this chapter shall not affect its validity.

(2) For purposes of evaluating a TNC driver organization’s proof of support under subdivision (a) or (b), the board shall use the list of active TNC drivers that was most recently issued pursuant to Section 7470.6 at the time the TNC driver organization requested a board determination.

(3) A TNC driver organization may submit proof that active TNC drivers have authorized the TNC driver organization to act as their bargaining representative under subdivision (a) or (b) on a rolling basis, over any time period that the TNC driver organization elects. If the TNC driver organization does so, the board may evaluate the proof on a rolling basis, subject to confirmation that the TNC driver is still on the relevant list of active TNC drivers when the TNC driver organization requests a board determination. The deadline for the board to determine whether the TNC driver organization has presented proof that a sufficient number of active TNC drivers wish to be represented by the TNC driver organization shall begin to run when the TNC driver organization notifies the board that it believes it has presented sufficient proof and is requesting a board determination.

(d) A TNC driver organization may, at any time within one year of the board’s determination that the organization has been authorized to act as the bargaining representative by at least 10 percent of active TNC drivers, petition the board to conduct a representation election.

(1) Upon the receipt of such a petition, the board shall schedule a representation election to take place within 45 days and shall announce that election date on its internet website. The eligible voters shall be those individuals who are on the list of active TNC drivers that was most recently issued pursuant to Section 7470.6 at the time the TNC driver organization petitioned the board to conduct an election.

(A) The election shall be conducted using a remote electronic voting system that must allow both electronic voting from remote site personal computers via the internet and electronic voting from personal or cellular telephones. The system shall not include voting machines used for casting votes at polling sites or electronic tabulation systems where votes are cast nonelectronically but counted electronically, such as punch card voting or optical scanning systems.

(B) If, within seven days of the announcement of the election date, any other TNC driver organization submits evidence that it has been authorized to act as the bargaining representative by at least 10 percent of active TNC drivers, that TNC driver organization shall also appear on the ballot.

(C) Thirty days prior to the representation election, the board shall provide TNCs with an election notice that informs TNC drivers of the election date, how to vote, and what the effect of the representation election will be if the TNC driver organization receives a majority of valid votes cast. The board shall provide translated versions of the notice in all languages that the board determines are likely spoken by 5 percent or more of TNC drivers. Within seven days of the board’s provision of the notice, each covered TNC shall send the notice, by email, by text, and through the method it ordinarily uses to communicate with TNC drivers, to all of the TNC drivers who appeared on the most recent list submitted by that TNC to the board pursuant to Section 7470.6. The board’s notice shall advise TNC drivers of the threshold for status as an active driver eligible to cast a vote. The board may provide different versions of the notice that are appropriate for different means of communication.

(2) If the TNC driver organization receives a majority of valid votes cast by active TNC drivers, it shall be certified as the certified driver bargaining organization of all TNC drivers in the bargaining unit.

(3) When two or more TNC driver organizations are on the ballot and none of the listed choices receive a majority of the valid votes cast, there shall be a runoff election between the two choices receiving the highest number of votes cast and second highest number of votes cast. The election shall be held within 30 days of the determination that no choice received a majority of valid votes. The provisions for notice set forth in subparagraph (C) of paragraph (1) shall apply.

(A) The TNC drivers eligible to vote in the runoff election shall be the same TNC drivers who were eligible to vote in the original election. A TNC driver organization receiving a majority of the valid votes cast in the runoff shall be certified as the certified driver bargaining organization of all TNC drivers in the bargaining unit.

(B) If a majority of the valid votes cast are for no driver organization, then the board shall not certify any TNC driver organization as the certified driver bargaining organization.

(e) (1) A TNC driver organization certified as the certified driver bargaining organization shall have the authority to represent all TNC drivers in the bargaining unit, without challenge by another TNC driver organization, for one year following certification and during the time that a bargaining agreement is in effect, provided that this period shall not be longer than three years following the date of the approval of a bargaining agreement, except during a 30-day window period that shall begin 90 days before, and end 60 days before, the bargaining agreement expires.

(2) During the times when the certified driver bargaining organization is subject to challenge, TNC drivers may file for a decertification election upon a showing that at least 30 percent of active TNC drivers have demonstrated support for decertification. The board will determine the list of active TNC drivers pursuant to Section 7470.6. The board will then schedule an election within 30 days to determine the TNC driver organization’s status as the certified driver bargaining organization. The TNC driver organization shall retain its status as the certified driver bargaining organization if it receives a majority of valid votes cast by active TNC drivers.

(f) The only appropriate bargaining unit of TNC drivers for purposes of this chapter is a statewide unit of all TNC drivers who drive for covered TNCs.


text:
(a) The certified driver bargaining organization shall have the right to represent all TNC drivers in the bargaining unit with respect to matters within the TNC driver organization’s role as representative for purposes of this chapter. No other TNC driver organization shall be entitled to engage in bargaining with the covered TNCs concerning matters within the scope of representation.

(b) The certified driver bargaining organization shall represent each TNC driver in the represented unit fairly with respect to matters within the scope of representation of the bargaining unit for purposes of this chapter, without discrimination and without regard to whether the TNC driver is a member of the TNC driver organization.

(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.

(d) The certified driver bargaining organization shall have a right to voluntary membership dues deduction upon presentation of dues deduction authorizations signed by individual TNC drivers, which may be in an electronic format or through the covered transportation network company’s online-enabled application.

(1) A covered TNC shall commence making deductions as soon as practicable, but no later than 30 days after receiving proof of a signed dues deduction authorization, and dues shall be submitted to the certified driver bargaining organization within 30 days of the deduction.

(2) The right to the membership dues deduction shall remain in full force and effect until an individual revokes authorization for deductions in writing in accordance with the terms of the signed authorization.

(e) (1) Within 30 days after certification of the certified driver bargaining organization, the board shall develop a notice of TNC driver rights that notifies TNC drivers of their rights under this chapter and other applicable law, explains that TNC drivers are represented by the certified driver bargaining organization, provides the internet website and contact information of the certified driver bargaining organization, and informs TNC drivers of the procedure for filing an unfair practice charge. The board shall also post a copy of this notice on its internet website, may provide different versions of the notice that are appropriate for different means of communication, shall translate versions of the notice into all languages that the board determines are likely spoken by 5 percent or more of TNC drivers, and may modify this notice from time to time upon request of the certified driver bargaining organization.

(2) Within 30 days of the board’s development of the notice described in paragraph (1), and at least once per month thereafter, each covered TNC shall send the notice to all TNC drivers who have provided rides within the State of California within the prior six months by text, email, and through the method that the covered TNC ordinarily uses to communicate with TNC drivers, provided that a covered TNC may petition to the board to be exempted from this requirement if it would impose an undue cost upon the covered TNC.

(3) Each covered TNC shall provide newly activated TNC drivers a notice, via electronic communication on its digital network, that they are represented by the certified driver bargaining organization upon the TNC driver’s activation and that, if the driver performs 20 or more rides during a six-month period, their contact information will be provided to the certified driver bargaining organization on the next quarterly list. The notice shall be in a form approved by the certified driver bargaining organization and shall provide contact information for the certified driver bargaining organization.

(4) A covered TNC shall, within five days of receiving a request from the certified driver bargaining organization, confirm whether an individual has completed rides through the TNC’s platform.


text: 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.


text: For purposes of this chapter, the term “scope of representation” shall mean TNC driver earnings, benefits, and other terms and conditions of work, including deactivations, which shall be mandatory subjects of bargaining.


text: 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.


text:
(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.

(3) Paid leave.

(4) Information disclosed to TNC drivers about trips on per-trip, weekly, and monthly earnings receipts and summaries, and on initial ride offers.

(5) Grievance and arbitration procedures to resolve disputes arising under the sectoral agreement.

(6) Grievance and arbitration procedures to resolve disputes about whether a TNC driver has received the mandatory compensation or benefits required by Chapter 10.5 (commencing with Section 7448).

(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.

(8) Labor-TNC partnerships.

(9) Reasonable access by the certified driver bargaining organization to covered TNC-TNC driver communication systems.

(10) Deduction of voluntary fees and dues from payments to TNC drivers.

(11) Contributions or fees for a separate fund for the administration of benefits and services to TNC drivers including for TNC driver representation in deactivation appeals and other related activities.

(12) Duration of the sectoral agreement, which shall be between three and five years.

(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).

(2) Restrains TNC drivers’ flexibility to choose work opportunities as protected by Section 7451.

(3) Alters or purports to alter the legal status of TNC drivers as independent contractors as established by Section 7451.

(4) Prevents an individual covered TNC from exercising its autonomy pursuant to Section 7470.12.


text:
(a) After the board notifies the covered TNCs of the board’s determination that a specified TNC driver organization is the certified driver bargaining organization for the bargaining unit, that TNC driver organization or those covered TNCs may request to begin negotiations.

(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.

(2) Covered TNCs may form a multicompany committee for purposes of collective bargaining. If covered TNCs do not form a multicompany committee pursuant to this paragraph, then the certified driver bargaining organization may require all covered TNCs to bargain within the certified driver bargaining organization together, and an individual covered TNC shall not object to such a requirement to bargain in concert with other covered TNCs.

(3) A sectoral agreement shall be approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.

(4) For purposes of this subdivision, “to negotiate in good faith” means the performance of the mutual obligation of the covered transportation network companies or their agents or representatives and the certified driver bargaining organization to meet at reasonable times and negotiate in good faith with respect to subjects within the scope of representation and to execute a written contract incorporating any agreement reached if requested by either party. However, this mutual obligation does not compel either party to agree to a proposal or require the making of a concession.

(c) If the certified driver bargaining organization and covered TNCs reach a recommended sectoral agreement for the bargaining unit, the recommended agreement shall be ratified pursuant to the certified driver bargaining organization’s procedures. The recommended agreement shall then be submitted to the board for review and approval or disapproval. If the recommended agreement is not ratified according to the certified driver bargaining organization’s procedures, the certified driver bargaining organization and covered TNCs shall resume bargaining.

(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.

(2) If the parties have not agreed upon a mediator, the board shall, within seven days of receiving the petition, obtain from the California State Mediation and Conciliation Service (CSMCS) a list of nine qualified, disinterested mediators who have experience in labor mediation and submit it to the parties. A representative of the covered TNCs and a representative of the certified driver bargaining organization shall alternately strike from the list one of the names. The order of striking shall be determined by lot until one name remains. The remaining person shall be designated as the mediator. In the event the parties are unable to select the mediator within 15 days following receipt of the list from the board because a party refuses to strike names, the board shall appoint the mediator from the list provided by CSMCS.

(3) The parties shall have a duty to participate in good faith in mediation.

(4) If the certified driver bargaining organization and the covered TNCs reach a recommended sectoral agreement for the industry through mediation, the approval process described in subdivision (c) shall apply.

(5) Communications and documents exchanged pursuant to mediation shall be inadmissible in any official, regulatory, or judicial proceeding, consistent with Chapter 2 (commencing with Section 1115) of Division 9 of the Evidence Code.

(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.

(2) If the mediator is unable to achieve agreement between the parties concerning an appropriate resolution within 75 days of appointment of the mediator or within 60 days after the first meeting of the parties with the mediator, whichever occurs first, either the certified driver bargaining organization or the covered TNCs may petition the board to refer the dispute for resolution through arbitration. The parties may also jointly file a petition requesting referral of the dispute to arbitration at any time after the commencement of bargaining. Upon a filing of such a petition, the board shall refer the dispute to the arbitrator for resolution.

(3) (A) The arbitrator shall hold hearings on all matters related to the dispute. The parties may be heard and represented by counsel or by other representatives, as the parties may designate. The arbitrator shall determine the order of presentation by the parties and shall have discretion and authority to decide all procedural issues that may be raised. At the mutual request of the parties, the arbitrator may meet directly with the parties to attempt to mediate the dispute.

(B) The TNCs and the certified driver bargaining organization shall each be responsible for 50 percent of the cost of the arbitrator or mediator. The board shall have the authority to apportion costs among TNCs based on market share if the TNCs cannot agree to apportion costs among themselves.

(C) The parties may present, either orally or in writing, or both, statements of fact, supporting witnesses and other evidence, and arguments of their respective positions.

(D) The arbitrator shall have the authority to require the production of additional oral or written evidence from the parties. The arbitrator shall provide, at the request of either party, that a full and complete record be kept of any hearings, with the cost of the record borne by the requesting party. If such a record is created, it shall be shared with all parties, regardless of the party that paid for it.

(E) Within 90 days of the first meeting of the parties with the arbitrator or 105 days after appointment of the arbitrator, whichever occurs first, the arbitrator shall make a just and reasonable determination of the matters in dispute, and shall issue a recommended sectoral agreement that resolves all disputed issues. The time period for the arbitration proceedings may be extended by the arbitrator upon good cause shown, or by agreement, by the parties.

(F) In issuing a recommended sectoral agreement, the arbitrator shall specify the basis for their findings, taking into consideration the following factors:

(i) The positions of the parties.

(ii) The conditions of similar workers.

(iii) Whether the terms of the recommended agreement achieve the policy goals set forth in Section 7470.1, including, but not limited to, the improvement of working conditions and the improvement or provision for the prompt resolution of disputes between covered TNCs and TNC drivers.

(iv) If the covered TNCs claim an inability to pay for the certified driver bargaining organization’s demands, the financial ability of the covered TNCs to pay for the requirements set forth in the recommended agreement.

(v) The impact of the recommended agreement on the delivery of services provided by TNCs.

(vi) Whether the recommended agreement would have a discriminatory impact on smaller TNCs or new entrants to the industry.

(vii) Any other factors recommended by the parties that the arbitrator finds to be consistent with this chapter.

(G) The sectoral agreement recommended by the arbitrator shall contain all of the following:

(i) Terms on which the parties have mutually agreed.

(ii) Binding recommendations on all minimum subjects set forth in subdivision (a) of Section 7470.13 that have not been waived.

(iii) Nonbinding recommendations on all other matters submitted for dispute resolution within the scope of representation.

(H) After receipt of the recommended sectoral agreement, the covered TNCs shall have 10 days to notify the certified driver bargaining organization as to whether the covered TNCs accept the recommended sectoral agreement in its entirety, including the nonbinding recommendations. If the covered TNCs accept the recommended sectoral agreement in its entirety, the recommended sectoral agreement shall be submitted to the board for review and approval or disapproval.

(I) The certified driver bargaining organization and the covered TNCs may also mutually agree to modify the recommended sectoral agreement and submit a modified sectoral agreement, in whole, to the board for review and approval or disapproval within 15 days after receiving the recommended sectoral agreement.

(J) (i) If, within 10 days of receiving the recommended sectoral agreement, the covered TNCs have not accepted the recommended sectoral agreement, and within 15 days of receiving the sectoral agreement the parties have not agreed upon a modified sectoral agreement, the certified driver bargaining organization may, within 20 days of receiving the recommended sectoral agreement, submit the proposed sectoral agreement without the nonbinding recommendations to the board for review and approval. Notwithstanding the submission of the modified sectoral agreement for approval, or the approval of the modified sectoral agreement, the parties shall have a duty to continue to bargain in good faith to reach agreement on the subjects addressed by the nonbinding recommendations.

(ii) If the certified driver bargaining organization does not elect to submit a proposed sectoral agreement to the board pursuant to clause (i), the parties shall have a duty to continue to bargain in good faith over the items in dispute to reach agreement on a new sectoral agreement for submission to the board.

(iii) The certified driver bargaining organization and the covered TNCs may, at any time, mutually submit a new proposed sectoral agreement to the board for review and approval or disapproval, and such an agreement may include modifications to any of the terms of the binding recommendations.

(K) The time periods set forth in this section may be extended by mutual agreement of the certified driver bargaining organization and the covered TNCs.

(L) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.

(f) Following an initial sectoral agreement, all subsequent negotiations for all subsequent agreements shall begin at least 180 days before the current agreement expires. For all subsequent agreements, either the covered TNCs or the certified driver bargaining organization may, at any time after 180 days after the commencement of negotiations, petition the board to refer the parties to mediation. Except as provided in this subdivision, the timelines and procedures for mediation and arbitration for subsequent agreements shall be as provided in this section. The terms of a sectoral agreement shall remain in effect, including, but not limited to, any grievance and arbitration provisions and any provisions governing the deduction and transmittal of membership dues, until a new agreement is approved by the board.

(g) For purposes of this section, any decision is binding on all covered TNCs if approved by covered TNCs that include at least 80 percent of the industry, as measured by rideshare volume on the most recent quarterly report filed with the board, and that include at least the two largest covered TNCs.


text:
(a) A TNC that was not a covered TNC when a sectoral agreement took effect but whose rideshare volume in a later quarter brings it within the 95-percent threshold identified in Section 7470.5 shall become a covered TNC, and therefore bound by all terms of the sectoral agreement immediately, unless exempted pursuant to subdivision (c).

(b) A TNC that becomes a covered TNC pursuant to this section shall remain a covered TNC for the remaining term of the sectoral agreement.

(c) (1) If a TNC that would otherwise become a covered TNC under subdivision (a) obtains a preliminary injunction, final court order, or other legal or regulatory order that exempts such covered TNC from any provision of the sectoral agreement, that TNC shall not be bound by the enjoined provision, pending final resolution of the litigation, or the resolution of emergency negotiations as provided in this section, whichever is earlier. All other provisions of the agreement shall continue to apply to all covered TNCs.

(2) Within three business days of receiving notice of such injunction or order, the board shall convene the certified driver bargaining organization and all covered TNCs for emergency negotiations aimed solely at revising the provision or provisions deemed unlawful as applied to the objecting TNC. Emergency negotiations under this subdivision shall neither reopen nor impair any agreement terms not directly related to the provision or provisions held unlawful.

(3) Any agreement reached under this subdivision must be approved by covered TNCs that include at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that include at least the two largest covered TNCs, unless the 80-percent requirement is itself adjudged unlawful as to any covered TNC, in which case the revised provision shall require the unanimous agreement of all covered TNCs.

(4) Any agreement resulting from emergency negotiations must be reviewed and approved or disapproved by the board, in accordance with the requirements of Section 7470.17, within 14 calendar days after the end of emergency negotiations.

(5) If emergency negotiations do not produce an agreement approved by the necessary parties for submission to the board within 30 days, either the certified driver bargaining organization or any nonobjecting TNC may rescind the sectoral agreement by notifying the board within 10 days of the expiration of the 30-day period. Upon rescission of the sectoral agreement, the certified driver bargaining organization and all covered TNCs shall have a duty to bargain in good faith for a new sectoral agreement pursuant to Section 7470.10. If neither the certified driver bargaining organization nor any nonobjecting TNC rescinds the sectoral agreement, the sectoral agreement shall remain in effect except for any provision or provisions deemed unlawful as applied to the objecting TNC.

(6) If a sectoral agreement is rescinded pursuant to paragraph (5), the certified driver bargaining organization and any covered TNC or group of covered TNCs may enter into an agreement consistent with Section 7470.13 that shall be effective until a new sectoral agreement is approved. That agreement shall be submitted to the board for approval or disapproval pursuant to Section 7470.17 but, upon approval by the board, such an agreement shall only be effective as to the TNCs that have approved the agreement.


text:
(a) When a sectoral agreement is in effect, any TNC that is not a covered TNC for purposes of Section 7470.5 may choose to become bound to the sectoral agreement by providing written notice to the board, the certified driver bargaining organization, and the covered TNCs. A TNC that chooses to become bound to a sectoral agreement pursuant to this section shall be bound for the remaining term of the agreement. Such a TNC shall not, on account of its exercise of the option provided by this section, become a covered TNC for purposes of negotiation of subsequent sectoral agreements or coverage by subsequent sectoral agreements.

(b) It shall be unlawful for any TNC that is not a covered TNC nor voluntarily bound by the terms of the sectoral agreement as provided by this section to make any statement, advertisement, or imply in any official communication that such TNC is bound by the terms of the sectoral agreement.

(c) During the time that a noncovered TNC is bound by the terms of the sectoral agreement pursuant to this section, the certified driver bargaining organization shall represent the TNC drivers who drive for the noncovered TNC for purposes of this chapter. The noncovered TNC shall have the same obligations as a covered TNC to provide information to the board necessary to administer this chapter and to provide information to the certified driver bargaining organization necessary for representation of the TNC drivers.


text:
(a) After a sectoral agreement has been approved by the parties or recommended by an arbitrator, the agreement shall be submitted to the board for approval or disapproval.

(b) The general counsel of the board shall review the proposed agreement to determine whether:

(1) The agreement addresses the mandatory subjects established in subdivision (a) of Section 7470.13 that were not mutually waived.

(2) The agreement does not contain any terms prohibited by subdivision (c) of Section 7470.13.

(3) The agreement advances the public policy goals stated in Section 7470.1.

(4) The agreement will not have anticompetitive effects on the industry beyond those contemplated by this act.

(5) The agreement was the product of fair, arm’s-length negotiation or arbitration under the procedures of this chapter.

(c) The general counsel has the right to gather and consider any necessary additional evidence, including by requesting additional information from the certified driver bargaining organization and the covered TNC, to review the proposed agreement.

(d) The general counsel shall issue a recommended determination as to whether the agreement should be approved or disapproved. If the general counsel recommends that the agreement be disapproved, the general counsel shall provide reasons for the disapproval and identify any provisions that the general counsel determined were not consistent with the standards in subdivision (b). If the general counsel recommends approval of the agreement, the general counsel shall provide a written opinion identifying the reasons for the approval. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.

(e) The general counsel’s recommendation shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.

(f) If a final order of the board disapproves of the proposed sectoral agreement, the certified driver bargaining organization and covered TNCs shall bargain in good faith to reach agreement on a revised sectoral agreement for submission to the board. If the proposed sectoral agreement was recommended by an arbitrator or modified by the parties after an arbitrator recommended a sectoral agreement, either the certified driver bargaining organization or the covered TNCs may request that the board remand the matter to the arbitrator for resolution of any disputes and the issuance of a revised recommended sectoral agreement for submission to the board. A revised agreement shall be submitted to the board for review pursuant to this section.

(g) (1) If the proposed sectoral agreement includes binding terms that were recommended by an arbitrator and not mutually accepted by the certified driver bargaining organization and covered TNCs, the general counsel shall recommend disapproval of the proposed agreement if a party demonstrates that the arbitrator’s recommendations were procured by corruption, fraud, or other undue means, there was corruption by the arbitrator, the rights of the party were substantially prejudiced by the misconduct of the arbitrator, or the arbitrator’s recommendation was arbitrary or capricious in light of the record. Absent good cause, the general counsel shall issue the determination within 60 days of receipt of the recommended agreement.

(2) The general counsel’s recommendation pursuant to this subdivision shall be served on the board and the parties to the agreement. Within 21 days of the general counsel’s recommendation, the board shall issue a final order that approves or disapproves the agreement.

(3) If a final order of the board disapproves a proposed agreement pursuant to this subdivision, the parties shall bargain in good faith to reach agreement on a sectoral agreement for submission to the board. Either side may request that the board conduct a new process to select a new arbitrator and refer the parties to arbitration pursuant to Section 7470.14.

(h) Upon approval of a sectoral agreement by the final order of the board, the agreement shall be final and binding on the certified driver bargaining organization and the TNC drivers it represents and on all covered TNCs. The terms of the agreement shall thereby become enforceable commitments for each covered TNC to implement with respect to TNC drivers. Each covered TNC shall adhere to the terms as minimum standards for all TNC drivers using its platform in the state for the duration of the agreement. In the event of any conflict between an approved sectoral agreement and a term of service or contract between an individual TNC driver and a covered TNC, the sectoral agreement shall prevail for covered matters, except that nothing in the sectoral agreement shall reduce rights or benefits already secured by law or individual contract.

(i) During the term of a sectoral agreement, the agreement may be reopened, amended, or modified by mutual agreement of the certified driver bargaining organization and the covered TNCs. Any such amendments or modifications must be submitted to the board for approval or disapproval pursuant to this section and shall become effective only upon approval of the board.

(j) For purposes of this section, any decision or action by the covered TNCs means a decision or action approved by covered TNCs that includes at least 80 percent of the industry measured by rideshare volume on the most recent quarterly report filed with the board and that includes at least the two largest covered TNCs.


text:
(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:

(1) Fail or refuse to provide the board with a list containing the information required by subdivision (a) of Section 7470.6 or subdivision (c) of Section 7470.9 or any other information required by this act, or knowingly provide an inaccurate list or inaccurate information.

(2) Fail or refuse to negotiate in good faith with a certified driver bargaining organization, as required by this act.

(3) Fail or refuse to provide a certified driver bargaining organization with information required by the organization that is relevant and necessary in discharging its representational duties or in exercising its right to represent TNC drivers regarding terms and conditions of work within the scope of representation, as established in this act.

(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.

(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.

(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.

(9) Interfere with, restrain, or coerce TNC drivers in the exercise of rights guaranteed by Section 7470.3 or in any other way violate this chapter.

(b) It shall be an unfair practice for a TNC driver organization or its agents to do any of the following:

(1) Restrain or coerce either of the following:

(A) TNC drivers in the exercise of rights guaranteed in Section 7470.3. This subparagraph shall not impair the right of a TNC driver organization or certified driver bargaining organization to prescribe its own rules with respect to the acquisition or retention of membership therein or with respect to TNC drivers’ financial contributions to a TNC driver organization or a certified driver bargaining organization.

(B) A covered TNC or multicompany committee in its selection of representatives for purposes of bargaining or the adjustment of grievances.

(2) Cause or attempt to cause a TNC or its agent or representative to violate subdivision (a).

(3) Fail or refuse to negotiate in good faith with a covered TNC or multicompany committee as required by this chapter, provided it is the certified driver bargaining organization.

(4) Fail or refuse to provide information requested by a covered TNC or its representative that is relevant and necessary for purposes of bargaining regarding terms and conditions of work within the scope of representation, as established by this chapter, provided that it is the certified driver bargaining organization.

(5) Fail or refuse to fulfill its duty of fair representation toward TNC drivers where it is the certified driver bargaining organization by acts or omissions that are arbitrary, discriminatory, or in bad faith.

(c) The unfair practice procedures in Chapter 1 (commencing with Section 31001) of Division 3 of Title 8 of the California Code of Regulations shall apply for purposes of this chapter, except to the extent that the board has adopted procedures specific to this act.

(d) A party filing an unfair practice charge under this section may petition the board to seek injunctive relief on behalf of the charging party, pending a decision on the merits of the charge by the board. The board may also petition the appropriate superior court for that relief in accordance with Section 3563 of the Government Code or any regulation adopted thereunder.


text: Any meeting of a mediator or arbitrator with any party or group or both parties or groups to the negotiations process and the mediation and arbitration processes set forth in Section 7470.14 is exempt from the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).


text: The provisions of this chapter are severable. If any portion, section, subdivision, paragraph, clause, sentence, phrase, word, or application of this chapter is for any reason held to be invalid by a decision of any court of competent jurisdiction, that decision shall not affect the validity of the remaining portions of this chapter. The people of the State of California hereby declare that they would have adopted this chapter and each and every portion, section, subdivision, paragraph, clause, sentence, phrase, word, and application not declared invalid or unconstitutional without regard to whether any other portion of this chapter or application thereof would be subsequently declared invalid.


text: The board may also adopt, amend, or repeal all rules and regulations necessary to carry out this chapter as emergency regulations in accordance with the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The adoption, amendment, or repeal of regulations pursuant to this chapter shall be deemed necessary for the immediate preservation of the public peace, health, safety, or general welfare within the meaning of Section 11346.1 of the Government Code.


citation: BPC § 7500

text: This chapter of the Business and Professions Code constitutes the chapter on repossessors. It may be cited as the “Collateral Recovery Act.”

history: (History: Amended by Stats. 1995, Ch. 505, Sec. 1. Effective January 1, 1996.)

chapter: 11. Repossessors

article: 1. General Provisions

path: 3. PROFESSIONS AND VOCATIONS GENERALLY > 11. Repossessors > 1. General Provisions