Labor News & Commentary October 8 Governor Newsom signs an agreement to create a pathway for unionization for Uber & mor

[Omaha Steve]

https://onlabor.org/october-8-2025/

By Gurtaran Johal

Gurtaran Johal is a student at Harvard Law School.

In today’s news and commentary, the Trump administration threatens no back pay for furloughed federal workers; the Second Circuit denies a request from the NFL for an en banc review in the Brian Flores case; and Governor Gavin Newsom signs an agreement to create a pathway for unionization for Uber and Lyft drivers.

On Tuesday, October 7th, President Donald Trump stated that federal workers who are currently furloughed due to the government shutdown may not be eligible for back pay. A draft of a White House memo on the subject was first reported to Axios by three sources. President Trump’s comments are in direct contravention to the 2019 Government Employee Fair Treatment Act (GEFTA), which Trump signed following the last government shutdown that lasted 35 days. The GEFTA is interpreted as guaranteeing back pay for furloughed workers, including during future shutdowns. Axios reports that this move is a threat forcing congressional Democrats to help end the shutdown.

Meanwhile, the Second Circuit rejected a request from the NFL for an en banc review of an August 2025 decision from a three-judge panel that denied the NFL’s request to push legal claims that the former Dolphins coach Brian Flores filed against the NFL, Giants, Broncos, and Texans to arbitration. Flores originally filed a class action suit in 2022 against the NFL, Giants, Broncos, and Dolphins, arguing the racial discrimination occurred during the league’s interview and hiring processes. The NFL has tried to force arbitration, but with the Second Circuit’s holding, Flores’s claims cannot be forced into arbitration. As noted by the Second Circuit in its August 2025 decision, allowing for arbitration would force the claims to be decided by the NFL’s “principal executive office,” the commissioner, which “offends basic presumptions of our arbitration jurisprudence.”

Lastly, on Friday, October 3rd, Governor Gavin Newsom signed an agreement that creates a pathway to unionization for Uber and Lyft drivers. This will allow thousands of drivers to bargain collectively while remaining classified as independent contractors. The California Bill, AB 1340, outlines the bargaining terms for California-based drivers to seek increased pay and employee benefits. Newsom also signed another law, SB 371, that significantly reduces Uber and Lyft’s insurance coverage requirements.