Minnesota government officials have reached an agreement with rideshare companies Uber and Lyft to establish minimum wage standards for drivers, following nearly a year of negotiations. The deal comes after the companies threatened to withdraw their businesses from the state due to a proposed Minneapolis ordinance that aimed to increase worker protections for rideshare drivers. The ordinance, initially approved in August 2023, sought to provide more comprehensive benefits to contract workers, including minimum pay rates of $1.40 per mile and $0.51 per minute. However, Lyft and Uber warned they would leave Minneapolis, leading state lawmakers to focus on finding a compromise before a July 1 deadline.
The new agreement sets a statewide minimum wage rate for rideshare drivers at $1.28 per mile and $0.31 per minute, which overrides the higher rate proposed by the Minneapolis City Council. This change represents a 20% increase in pay for drivers across Minnesota, according to Democratic House Majority Leader Jamie Long. The bill also includes what Long referred to as the strongest insurance provision for drivers in the entire country. Democratic Senate Majority Leader Erin Murphy described the negotiations as a difficult compromise that had to balance the needs of employees with the transportation needs of Minnesotans who rely on rideshare services.
Following the announcement of the agreement, Uber’s policy director Josh Gold applauded the efforts of riders and drivers who sent close to 100,000 emails to legislators to make their voices heard. Gold emphasized that while the forthcoming price increases may impact both riders and drivers, the compromise brokered by the Governor ensures that Uber can continue to operate across the state. On the other hand, Lyft has not provided a comment on the matter in response to CNN’s request. The agreement represents a significant milestone in addressing the concerns of rideshare drivers in Minnesota and ensuring fair compensation and worker protections in the industry.
