Published
February 27, 2026
A proposal in Springfield, Illinois, to give Uber and Lyft drivers new collective bargaining rights would create a sweeping, state-run collective bargaining system for one industry — and it’s raising serious concerns across the state.
This effort is being led by a group called the “Illinois Drivers Alliance,” which is actually backed by International Association of Machinists (IAM) Local 70 and Service Employees International Union (SEIU) Local 1. Labor activists rallied at the Illinois State Capitol on January 21, 2026, to ask legislators to support their effort to unionize.
Drivers currently lack the right to unionize under federal labor law because they are classified as independent contractors. The proposal would not change that classification, but it would give rideshare drivers the right to unionize in Illinois despite their contractor status.
While framed as a way to stabilize driver incomes, the bill would almost certainly drive up costs and reduce service:
- Higher labor and compliance costs are likely to be passed on as higher fares.
- Companies may scale back service in smaller markets or at off-peak times.
- Workers in hospitality, healthcare, retail, and other sectors that rely on affordable rideshares would feel the impact.
Many drivers value flexibility. However, a formal bargaining regime risks adding rigidity, complexity, and new rules that could make part-time or supplemental driving less attractive, shrinking the driver pool and further limiting service for customers.
Just as importantly, this bill would set a precedent. Illinois would be stepping deep into the business model of a fast-evolving tech-enabled sector. That sends a cautionary signal to other innovators and investors considering where to launch or grow new platforms.
There are real issues to address in the rideshare industry — from transparency to dispute resolution — but they warrant targeted, balanced reforms, not a broad, untested bargaining system for a single industry.
About the author
Michael Billet
Michael Billet, director of policy research for Employment Policy at the U.S. Chamber of Commerce, keeps members and internal Chamber policy staff abreast of pending labor, immigration, and health care legislation, as well as federal regulatory and subregulatory activities. He is also responsible for planning the Chamber’s annual workplace and community wellness forum.
