What Changed Under SB 623? A California Uber Accident Victim’s Guide

California has officially changed the rules for certain lawsuits involving Uber and other rideshare companies.

On June 25, 2026, Governor Gavin Newsom signed Senate Bill 623 (SB 623) into law. The legislation affects how some damages are calculated in rideshare accident cases, increases transparency around medical liens, strengthens background check requirements for drivers, and creates new safety options for women using rideshare apps.

The bill has generated significant attention because it followed months of debate between transportation network companies, consumer advocates, trial attorneys, and lawmakers.

If you’ve been injured in an Uber or Lyft accident, here’s what changed—and just as importantly, what didn’t.

Why Was SB 623 Introduced?

SB 623 emerged after Uber backed a proposed statewide ballot initiative that would have made sweeping changes to California personal injury law. Many of those proposed changes would have extended beyond rideshare accidents and affected automobile accident claims across California.

Rather than continuing toward a costly ballot fight, lawmakers negotiated a legislative compromise. The result was SB 623, a bill that applies specifically to claims involving transportation network companies such as Uber and Lyft.

What Is a Transportation Network Company?

Under California law, a transportation network company (TNC) is a business that connects passengers with drivers through an online platform using the driver’s personal vehicle. The most recognizable examples are Uber and Lyft.

SB 623 applies to civil claims arising from automobile accidents involving these companies and their drivers.

How SB 623 Changes Uber Accident Lawsuits

One of the biggest legal changes involves medical expenses that are provided on a medical lien.

A medical lien allows an injured person to receive treatment without paying upfront. Instead, the medical provider agrees to wait until the personal injury claim resolves before seeking payment.

“Getting medical treatment quickly after an accident is one of the most important things an injured person can do, not just for their health, but for their case,” explained Parham Nikfarjam, Senior Trial Attorney at J&Y Law. “Insurance companies look for gaps in treatment almost immediately. If someone waits weeks to see a doctor or misses appointments because they can’t afford care, insurers will often argue the injuries weren’t that serious or were caused by something else. Medical liens help bridge that gap by allowing people to receive treatment when they need it instead of waiting until they can afford it. That’s good for patients, and it leads to better outcomes both medically and legally.”

Effective January 1, 2027, under SB 623, recoverable damages for certain lien-based medical treatment generally cannot exceed the 70th percentile of FAIR Health billed charges—or a comparable commercially recognized database—for similar services performed in the same geographic area.

The law also creates additional disclosure requirements involving medical liens and how they are transferred between companies.

These provisions are intended to increase transparency during litigation and reduce disputes over the value of medical expenses presented to a jury.

Greater Transparency for Medical Liens

SB 623 also changes what information may be discoverable during litigation.

Among other things, the law allows discovery regarding:

• Certain sales or transfers of medical liens
• Financial consideration paid to acquire those liens
• Certain financial relationships involving lien-based providers
• Certain attorney referral information related to lien-based treatment

If a medical lien has been sold or transferred, the law limits recoverable medical expense damages in certain circumstances based on the consideration paid to acquire that lien.

These provisions are designed to make financial arrangements surrounding medical liens more transparent during litigation.

New Rules for Attorney Referrals

SB 623 also establishes new restrictions involving attorney referrals to healthcare providers.

Among its provisions, the law makes it unlawful for an attorney representing a client under a contingency fee agreement in a qualifying rideshare case to refer that client to a healthcare provider in which the attorney—or an immediate family member—has a direct ownership interest.

The law also prohibits certain fee-splitting arrangements and other forms of compensation involving lien-based medical treatment.

These provisions are intended to reduce potential conflicts of interest and promote greater transparency for injured consumers.

Stronger Background Checks for Uber and Lyft Drivers

Not every part of SB 623 concerns lawsuits.

The law also strengthens safety requirements for rideshare companies by expanding driver screening requirements.

Among the changes:

• Criminal background checks must be completed before a driver’s account is activated.
• Drivers must undergo updated background checks every year.
• Additional criminal convictions may disqualify someone from driving for a transportation network company.

For passengers, these requirements are intended to improve ongoing driver screening rather than relying solely on a one-time background check.

A New Safety Option for Women Riders

Another notable provision allows transportation network companies to facilitate matches between women passengers and women drivers when both choose that preference through the rideshare platform.

The law permits these matching preferences notwithstanding California’s general public accommodation laws.

Supporters believe the option may provide an additional level of comfort and safety for many riders while remaining entirely voluntary.

Does SB 623 Eliminate Your Right to Compensation?

No. SB 623 changes certain legal rules that may apply in rideshare accident litigation, but it does not eliminate an injured person’s right to seek compensation after an accident caused by someone else’s negligence.

“This legislation is actually a victory for California consumers and taxpayers,” said Mr. Nikfarjam. “Uber’s original proposal would have reached far beyond rideshare accidents and fundamentally changed California’s personal injury system. It also would have shifted more of the financial burden for treating injured victims onto taxpayers through government-funded healthcare programs.”

Depending on the facts of a case, injured victims may still be able to recover damages for:

• Medical expenses
• Future medical care
• Lost wages
• Loss of future earning capacity
• Pain and suffering
• Emotional distress
• Other legally recoverable damages

Every case is different, and the value of a claim depends on the specific facts and evidence involved.

What Should You Do After an Uber Accident?

Whether SB 623 applies to your case or not, the steps you take immediately after a rideshare accident can make a significant difference.

If possible:

1. Seek medical attention promptly.
2. Report the accident through the rideshare app.
3. Document the accident scene with photographs.
4. Save screenshots of your ride information.
5. Keep copies of all medical records and bills.
6. Avoid accepting an insurance settlement before understanding your legal rights.
7. Speak with an experienced personal injury attorney if you have questions about your claim.

Early legal guidance can help preserve important evidence and ensure you understand how California law applies to your situation.

Talk to a California Rideshare Accident Attorney

SB 623 changes several important aspects of California rideshare litigation, particularly regarding lien-based medical treatment, litigation transparency, attorney referral practices, and driver background checks.

If you were injured in an Uber or Lyft accident in California—whether as a passenger, a rideshare driver, a pedestrian or cyclist, or an occupant of another vehicle—and you are facing mounting medical bills, pressure to accept a quick insurance settlement, or uncertainty about how SB 623’s new rules affect your claim, contact J&Y Law for a free case evaluation. Our attorneys serve clients statewide, including in Los Angeles, San Diego, Sacramento, San Jose, and communities across California.

Call us or reach out online. There is no cost to speak with an attorney.