Illinois Gives Rideshare Drivers Union Rights

Illinois rideshare drivers now have the ability to form unions and collectively bargain with companies such as Uber and Lyft under a recent state law signed by Gov. JB Pritzker.

Pritzker signed House Bill 5090 earlier this year, creating the Transportation Network Driver Labor Relations Act. The law establishes a process for rideshare drivers to organize, select union representatives and negotiate with rideshare companies over pay and other working conditions. More than 100,000 rideshare drivers in Illinois could be affected by the new law.

Rideshare drivers are generally classified as independent contractors rather than employees, which has limited their ability to organize under traditional federal labor law. The Illinois law creates a state-level collective bargaining system specifically for drivers working through transportation network companies.

Under the law, drivers seeking to organize must first demonstrate support from at least 10% of active drivers before an organization can begin the process of seeking certification. Support from at least 30% of active drivers is required for an organization to become the certified bargaining representative. Once certified, the organization can negotiate with covered rideshare companies on behalf of drivers.

The Illinois Department of Labor will oversee the collective bargaining process, including procedures involving bargaining disputes and final determinations. The law also includes provisions addressing unfair work practices and establishes rules governing the relationship between rideshare companies, drivers and their bargaining representatives.

The legislation does not change rideshare drivers' classification as independent contractors. Instead, it gives drivers collective bargaining rights while maintaining the employment model currently used by companies such as Uber and Lyft.

The law also creates the Rideshare Workers Support Fund. Covered rideshare companies will be assessed a 4-cent fee for each trip originating in Illinois, with the money used to cover implementation costs and support programs related to driver education and representation.

The legislation passed the Illinois General Assembly during the spring legislative session after months of lobbying by rideshare drivers and labor organizations. The measure passed the House 83-28 and the Senate 42-12-1 before being sent to Pritzker.

Supporters of the legislation argued that drivers needed a way to negotiate collectively over compensation, benefits, account deactivations and other workplace issues. Labor organizations have pursued collective bargaining rights for Illinois rideshare drivers for several years, with the effort gaining renewed momentum during the 2026 legislative session.

Illinois is now the third state to establish collective bargaining rights for rideshare drivers, following similar efforts in Massachusetts and California.