IRVINE, CA – October 26, 2026 – PRESSADVANTAGE –

Alipour Law Group, APC is highlighting Senate Bill 623, a 2026 California law that changes how certain medical expenses are valued in injury claims against ride-hailing companies and their drivers. The law applies to automobile accidents occurring on or after January 1, 2027.

Governor Gavin Newsom signed SB 623 on June 25, 2026, and it was chaptered as Chapter 17 of the Statutes of 2026, according to the Legislature’s bill record. The Senate concurred in the Assembly amendments by a vote of 36 to 0. The bill’s official title is “Automobile accidents: civil actions: transportation network companies.”

Alipour Law Group, APC Logo

The law resulted from a compromise between Uber and the Consumer Attorneys of California, according to published reports. It averted two competing initiatives that had qualified for the November 3, 2026 ballot. The 14 propositions numbered by the Secretary of State on June 29, 2026, include neither measure.

In a civil case, claim, or arbitration against a ride-hailing company, its subsidiary, or an app-based driver, SB 623 limits recovery for medical services provided by a lien-based provider. Recovery may not exceed the 70th percentile of FAIR Health’s billed charges, or of a comparable commercially recognized database, for the same or similar service in the applicable geographic area when the service was rendered, except as the law specifies. The law prohibits introducing certain evidence that exceeds the recoverable amount.

If a medical lien, receivable, or right to payment has been sold or transferred, the maximum recoverable amount may not exceed the total consideration paid or payable to acquire it, as provided. Agreements for the sale or transfer of a lien, and the consideration paid, are discoverable. An undisclosed sale or transfer may not be asserted against a defendant, insurer, settlement, judgment, or settlement proceeds.

SB 623 makes it unlawful for an attorney representing a plaintiff under a contingency fee agreement to refer a client to a health care provider in which the attorney or an immediate family member has a direct ownership interest. It makes it unlawful for an attorney to fee split or receive other specified compensation in connection with lien-based treatment, and for an attorney or law firm to provide specified compensation for referrals to lien-based providers.

The medical expense provisions apply to claims arising from accidents on or after January 1, 2027, in which the claimant received treatment from a lien-based provider. The chaptered text states that the new section does not alter existing law except as to recovery for past medical expenses from lien-based providers and as the section otherwise provides. According to CalMatters, the law does not cap attorney fees.

The law expands the offenses that bar a person from driving for a ride-hailing company and requires background checks before a driver’s account is activated and once annually thereafter.

Alipour Law Group, APC, based in Irvine, represents clients in rideshare, car, truck, motorcycle, bicycle, and pedestrian accident cases. Milad “Matt” Alipour is the firm’s founder and principal attorney.

The legal information in this release is based on the Legislative Counsel’s digest and chaptered text of SB 623, the Secretary of State’s ballot measure list, and published news reports. It is presented for general public awareness and is not legal advice. How the law applies to a particular claim depends on the facts and the statute’s full text.

Alipour Law Group, APC represents clients in Uber and Lyft accident cases in Orange County and throughout California.

###

For more information about Alipour Law Group, APC, contact the company here:

Alipour Law Group, APC
Matt Alipour
+1 (949) 997-9999
info@alipour.law
19800 MacArthur Blvd., Suite 300 Irvine, CA 92612

About The Author
PressAdvantage