Gov. JB Pritzker signed House Bill 5090 in Springfield, giving more than 100,000 Illinois rideshare drivers a path to form a rideshare independent contractor union and bargain collectively. The new law creates the Transportation Network Driver Labor Relations Act and sets up a process for organizing, elections and negotiations.
State Sen. Ram Villivalam said, “Rideshare drivers are the back-bones of our communities, getting our neighbors to their job, school or doctors' appointments.” He also said, “So many of our residents rely on rideshare drivers – meanwhile those driving are facing decreased wages, increased vehicle costs and unfair working conditions.”
House Bill 5090 in Illinois
The legislation gives drivers working through Uber and Lyft the right to form and join driver organizations and bargain collectively through representatives of their choosing. It establishes procedures for union recognition, contract negotiations and dispute resolution, and it also outlines unfair labor practices by rideshare companies and driver organizations.
An exclusive bargaining representative may negotiate with covered rideshare companies on compensation, benefits, paid leave, deactivation appeals, earnings transparency and workplace safety requirements. Any negotiated agreement must be approved by the Illinois Department of Labor before it takes effect.
App Drivers Union response
Genie Kastrup said, “Governor Pritzker's signature marks a turning point not just for rideshare drivers, but for the future of work in Illinois.” She added, “This law doesn't just give drivers a seat at the table – it shifts power to the workers who make this industry possible.”
Ronnie Gonzalez said, “By signing this bill into law, Governor Pritzker has given drivers the freedom to come together and have a voice in decisions about the pay, protections, and dignity they deserve.”
Rideshare Workers Support Fund
The law also establishes the Rideshare Workers Support Fund, financed through a per-trip fee paid by covered transportation network companies. Revenue from the fund will help cover administrative costs and support education and representation efforts for drivers.
Supporters say drivers need collective bargaining because they face lower wages and unfair working conditions even as Uber and Lyft have grown. The statewide bargaining unit now gives more than 100,000 people a legal route to organize around pay policies, deactivations and other workplace issues.
How quickly the new bargaining system will be implemented and which driver organization will be recognized first is not stated.
