California Gov. Gavin Newsom signs Uber lawsuit reform SB 623

Governor Gavin Newsom signed Senate Bill 623 on June 25, 2026, ending a disputed ballot-measure showdown between Uber and California trial attorneys. The legislation, effective Jan. 1, 2027, caps recoverable damages for lien‑based medical treatment at the 70th percentile of FAIR Health‑billed charges and adds disclosure requirements for medical lien transfers. It also limits fees that third‑party investors can earn from buying doctors' liens, aiming to keep Wall Street out of personal‑injury cases.

SB 623 mandates enhanced background checks for Uber drivers and other safety measures, responding to concerns about assault and misconduct. The deal, negotiated by Assemblymember Diane Papan and Sen. Tom Umberg, removes both parties' competing initiatives from the November ballot, halting a $50 million advertising war. Uber and the Consumer Attorneys of California presented the compromise as a blueprint for similar disputes in other states.

The law seeks to increase transparency, curb inflated medical bills, and protect rideshare passengers and accident victims while preserving attorneys' ability to represent clients.