Uber and Lyft Laws and Regulations in California
November 29, 2024 Posted In Car Accidents
California has laws and regulations for ride-hailing services like Uber and Lyft that continue to evolve. The state has made efforts to adapt to emerging technologies while still safeguarding public interests. Our Riverside Uber and Lyft accident attorney is knowledgeable in these laws and can help hold rideshare companies and drivers accountable for negligence.
Classification of Drivers
The classification of ride-hailing drivers has been a contentious issue in California. In 2019, Assembly Bill 5 (AB 5) was enacted, establishing criteria to determine whether a worker is an employee or an independent contractor. Under AB 5, many gig workers, including those for Uber and Lyft, were presumed to be employees, entitling them to benefits such as minimum wage, health insurance, and unemployment benefits.
In response, Proposition 22 was introduced and passed in November 2020, allowing app-based transportation and delivery companies to classify their drivers as independent contractors while providing certain benefits, such as minimum earnings guarantees and health care subsidies. This measure was upheld by the California Supreme Court in July 2024, solidifying the independent contractor status of these drivers.
Insurance and Liability Requirements
California Public Utilities Code 5433 mandates specific insurance coverages for ride-hailing services, categorized into three distinct periods:
Period 1: App is on, but no ride request is accepted.
Requires liability coverage of at least $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $30,000 for property damage.
Period 2: Ride request accepted, en route to pick up the passenger.
Requires $1 million in commercial liability insurance.
Period 3: Passenger in the vehicle until drop-off.
Also requires $1 million in commercial liability insurance.
These requirements ensure that adequate coverage is in place throughout the various stages of ride-hailing operations in the event that you get injured in a rideshare accident. Our Riverside car accident lawyer can help you navigate the complexities of determining liability.
Background Checks and Driver Requirements
Uber and Lyft are required to conduct comprehensive local and national criminal background checks on their drivers. This mandate was established by Assembly Bill 1289 (AB 1289), signed into law in September 2016. AB 1289 prohibits these companies from employing drivers who are registered sex offenders or have been convicted of violent felonies, among other serious offenses.
The California Public Utilities Commission (CPUC) oversees the implementation of these regulations, ensuring that ride-hailing companies comply with the state’s safety standards. While AB 1289 strengthened background check requirements, it did not mandate fingerprint-based checks, a point of ongoing debate among policymakers and stakeholders.
Accessibility and Non-Discrimination
Ride-hailing companies are obligated to comply with the Americans with Disabilities Act (ADA), ensuring services are accessible to individuals with disabilities. Despite these requirements, reports indicate that disabled passengers continue to face challenges, such as ride cancellations and refusals to accommodate wheelchairs and guide dogs.
Underage Passenger Policies
California does not have specific laws regarding underage passengers using ride-hailing services. However, both Uber and Lyft have policies prohibiting unaccompanied minors from using their platforms. Drivers are advised to decline ride requests from individuals under 18 who are not accompanied by an adult.
Recent Legal Developments
In October 2024, the U.S. Supreme Court declined to hear an appeal from Uber and Lyft regarding lawsuits filed by California officials over worker misclassification. This decision means that the companies may be required to pay back wages unless they reach a settlement with the state. Trial is anticipated to be scheduled for 2026.