Staff Reports
Governor Tim Walz of Minnesota has signed a bill mandating minimum pay rates and new insurance protections for Uber and Lyft rideshare drivers. This legislation follows a prolonged debate in Minnesota regarding the pay and working conditions of rideshare drivers.
Previously, the Minneapolis City Council had voted to raise wages for these drivers, prompting Uber and Lyft to threaten to leave the Twin Cities. In response, the Minnesota legislature quickly drafted a bill to prevent the companies from exiting the state.
Governor Walz stressed the importance of safeguarding workers and ensuring fair wages and safe working conditions for rideshare drivers. State Senator Omar Fateh, a Democrat involved in negotiating the bill, underscored the effort required to reach this compromise.
Under the new law, rideshare drivers will earn a minimum of $1.28 per mile and $0.31 per minute, which is lower than the rates approved by the Minneapolis City Council. Additionally, the bill includes what is described as the “strongest insurance provision for rideshare drivers in the U.S.” However, it stops short of classifying rideshare drivers as independent contractors, unlike some other states.
Despite Minneapolis Mayor Jacob Frey vetoing the City Council’s wage increase, the council managed to override his veto. The dispute among the Minnesota legislature, the Minneapolis City Council, and the governor has been ongoing for nearly two years.
In response to the new law, Uber and Lyft have agreed not to leave the Twin Cities metropolitan area but warned that the necessary price increases to comply with the law might adversely affect both riders and drivers.
The new law, set to take effect on January 1st next year, aims to ensure that rideshare drivers are paid fairly and provided with essential insurance protections.
