California Just Passed a New Rideshare Crash Law. Here's What SB 623 Means for You.

For months, Uber and California's injury attorneys were on a collision course toward one of the costliest ballot fights the state has seen, with more than $75 million lined up on each side. Then, on June 25, 2026, Governor Newsom signed Senate Bill 623, and the whole thing evaporated. Two competing measures came off the November ballot, including the Uber-backed initiative that would have cut crash victims' rights statewide.

So what does the deal actually do? Here's the part that affects you. If you have followed our coverage, this is the resolution to the ballot fight we have been tracking.

The bigger threat is gone

Uber's ballot measure was never just about rideshare. It would have limited how injured people recover medical costs, and capped attorney fees, in every car accident in California. In a state where almost no injury case reaches a jury and most people can't pay for treatment out of pocket, that would have quietly closed the courthouse door on a lot of ordinary victims.

That version is gone. What replaced it is narrower.

• The new law covers rideshare crashes only. If you're hurt in a regular collision with no Uber or Lyft involved, nothing about your case changes.
• Attorney fees were left alone. Uber pushed hard to cap them and lost. You can still hire a lawyer for an injury claim without paying anything upfront.
• Drivers face tighter screening: annual criminal background checks and a longer list of convictions that disqualify someone from driving for an app.

What the law changes in rideshare cases

This was a negotiated deal, so Uber got something too, limited to crashes involving its own drivers. Three changes matter most.

First, there's now a ceiling on certain medical costs. Many injured people treat on a medical lien, meaning the provider waits to get paid until the case settles and the patient owes nothing upfront. Going forward, a rideshare victim's recovery for that lien-based treatment is tied to roughly the 70th percentile of standard rates for the same service in the same area, measured against a recognized billing database. You can still treat on a lien. The recoverable number just tracks market pricing instead of an inflated bill.

Second, the law cracks down on selling medical liens to outside investors and forces those arrangements into the open, where the other side can see them. If a lien was sold, the recovery is capped at what was actually paid for it.

Third, there are new rules on referrals. A lawyer can't send a client to a medical provider the lawyer or a close relative owns, and certain fee-sharing and referral-payment setups with lien-based providers are now off the table.

What it means if you're hurt in an Uber or Lyft

You still have real rights, and you should still call a lawyer. Rideshare victims can recover full and fair compensation for their injuries. What changed is the machinery around medical liens and provider relationships, and that machinery got more complicated, not less.

That's the part people underestimate. Documenting treatment the right way and protecting the value of your claim under these new rules takes someone who works in this system every day. The wrong approach, or a firm that hasn't caught up, can quietly cost you thousands.

Talk to us

Kocaj Law represents injured people, not insurers or tech platforms. If you've been hurt in a rideshare crash or any car accident, we'll explain where you stand, how this new law touches your case, and what your claim is worth, then do the fighting while you focus on getting better. Consultations are free, and you owe us nothing unless we win. Call (949) 807-4055.

Related coverage from Kocaj Law

• The Uber Ballot Deal Is Only Half the Story: Why Crash Victims Should Watch Washington
• Congress Is Considering a Liability Shield for Uber, Lyft, and Other App-Based Companies
• "We're Going to Die Right Here in the Waymo": Why Uber Wants to Close the Courthouse Doors
• Uber's $77 Million California Power Grab: How Initiative 25-0022 Could Leave You Without a Lawyer
• Uber's California Ballot Initiative Threatens Accident Victims' Access to Lawyers and Medical Care
• Will I Still Be Able to Hire a Personal Injury Lawyer If Initiative 25-0022 Passes?
• California's Proposed 25% Contingency Fee Cap, Explained