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Minnesota Secures Higher Pay for Uber and Lyft Drivers

New law mandates increased minimum rates and protections for drivers, effective January 2025, following extensive negotiations and threats from ride-hailing companies.

Overview

  • Drivers will earn at least $1.28 per mile and $0.31 per minute starting January 1, 2025.
  • The legislation includes vehicle insurance and injury compensation for drivers.
  • Uber and Lyft had threatened to leave Minneapolis over higher local pay standards.
  • The new state law preempts local ordinances, setting a uniform standard across Minnesota.
  • Governor Tim Walz is expected to sign the bill, which aims to balance driver pay with rider affordability.