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11mo ago

Minnesota Lawmakers Approve Rideshare Driver Pay Increase

Uber and Lyft agree to stay in the state following a compromise on minimum pay rates, replacing a stricter Minneapolis ordinance.

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Dozens of protesters descend a staircase in the Minnesota State Capitol building in St. Paul, Minn., Friday, May 17, 2024, while holding signs and pushing for a law that would require ride-hailing companies – including Uber and Lyft -- to increase pay for drivers in the state. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation requiring the companies to raise driver pay by more than the companies want to.
Supporters of Minnesota legislation -- which would require ride-hailing companies to increase pay for drivers -- walk through the State Capitol building, holding signs that say "WE ARE COUNTING ON YOU" and shirts that say "MULDA Minnesota Uber/Lyft Driver Association," in St. Paul, Minn.,, May 17, 2024. Uber and Lyft have said they will leave the state if Minnesota lawmakers pass legislation that requires the companies to raise driver pay by more than they want to.
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Overview

  • The new statewide minimum pay will be $1.28 per mile and $0.31 per minute, effective January 2025.
  • This compromise overrides the Minneapolis ordinance that set higher pay rates, which had prompted exit threats from the companies.
  • Governor Tim Walz and Democratic leaders facilitated the negotiations to reach this agreement.
  • The deal is expected to raise driver pay by 20%, according to state officials.
  • Republican lawmakers criticized the process, claiming they were excluded from negotiations.