From JDSupra, Heather Caughron and Alessandra Whipple discuss new laws in California including exceptions to the independent contractor law for manicurists and commercial fishers and the Transportation Network Company Drivers Labor Relations Act which allows certain gig drivers to organize. Heather and Alessandra write:
In 2025, Governor Gavin Newsom signed more than a dozen bills that significantly expand and reform employer obligations in California. These new laws create additional workplace rights notices, broaden leave and rehiring protections, expand personnel file and pay reporting requirements, and alter wage and hour, independent contractor, website, and labor relations rules—most taking effect in 2026, with some provisions extending into 2027 and beyond.
Below is a high-level summary of the key 2026 developments affecting California employers. For a more comprehensive review of these new statutes and recent court decisions taking effect in the new year, we encourage you to register for our complimentary December 10 webinar, “New California Employment Laws & Developments for 2026,” presented by CDF partners Todd Wulffson and Alessandra Whipple. Register HERE to reserve your spot.
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AB 1514 – ABC Independent Contractor Test Exemptions for Manicurists and Commercial Fishers
AB 1514 extends the exemptions for licensed manicurists and commercial fishers working on an American vessel, from the ABC employee versus independent contractor worker classification test (and the holding in Dynamex Operations West, Inc. v. Superior Court, 4 Cal. 5th 903 (2018)) for purposes of worker classification until January 1, 2029, and January 1, 2031, respectively. Workers who qualify for the exemption will instead be evaluated under the more flexible employer friendly G. Borello & Sons, Inc. v. Department of Industrial Relations, 48 Cal. 3d 341 (1989) standard for independent contractors.
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AB 1340 — the Transportation Network Company Drivers Labor Relations Act
Starting January 1, 2026, the Transportation Network Company Drivers Labor Relations Act grants certain gig drivers in California the right to unionize, bargain collectively and engage in concerted activities, without being classified as employees. PERB is tasked to enforce the Act’s provisions, including resolving labor disputes, adjudicating unfair practice charges, and overseeing elections.
Who is Covered by AB 1340?
A TNC is a company operating in California that uses an app to connect drivers using personal vehicles with passengers. Drivers classified as employees under federal law or National Labor Relations Board (NLRB) rulings are excluded from AB 1340, under the theory that they already have unionization rights under federal law. The law only applies to non-employee independent drivers.
What Does AB 1340 Mandate?
The Act reflects California’s efforts to balance worker protections with the unique challenges of app-platform-based work, particularly after the contentious passage of Prop 22, which classified TNC drivers as independent contractors, as a matter of law.
Starting January 1, 2026, covered TNCs must submit to PERB every quarter a list of drivers who completed at least 20 rides in the past six months. The list must include each driver’s name, license number, known contact information, date joined, and ride count. PERB will take the data submitted by the covered TNC companies and calculate the median ride count and identify all “active” drivers—those meeting or exceeding the 20-ride threshold over the prior six-month period. The active drivers will have the right to unionize.
The unionization process is materially different from that under the NLRA. A TNC driver organization/union can begin the union organization process by making a showing to PERB that it has a mere 10% support among active drivers. PERB then has 30 days to verify that the 10% threshold is met.
If the threshold is met, TNCs must notify active drivers within 30 days after determining that the 10% threshold was met, and that the union is seeking to represent them. Only upon certification that the 10% threshold interest in unionization is met can PERB then provide the union with the list of eligible TNC drivers. The driver organization/union then has to show that it has 30% support to trigger an election. The election will be conducted using remote voting.
However, if the driver organization/union can show that it has more than 50% support, there shall be no election and the driver organization/union shall be automatically certified.
To find out more about AB 288, click HERE.
Source: Key New 2026 Employment Laws for California Employers | CDF Labor Law LLP – JDSupra