Minnesota lawmakers strike minimum pay deal for Uber, Lyft drivers
CNN
Minnesota government officials have struck a deal with rideshare companies Uber and Lyft to set minimum wage standards for drivers, lawmakers announced Saturday night.
Minnesota government officials have struck a deal with rideshare companies Uber and Lyft to set minimum wage standards for drivers, lawmakers announced Saturday night. The agreement is the culmination of nearly a year of back and forth between Democratic state officials and the two companies, who threatened to withdraw their businesses from Minnesota over a proposed Minneapolis ordinance that would grant rideshare drivers increased worker protections. The ordinance, initially adopted in August 2023, was part of a larger effort to grant more comprehensive benefits to contract workers, who take freelance work at digital platforms like DoorDash, Instacart, Uber and Lyft. It mandated drivers be paid at least $1.40 per mile and $0.51 per minute. The rule was delayed after Lyft and Uber warned they would leave Minneapolis. State lawmakers have been focused on compromising with the companies before a July 1 deadline. Under the new agreement, the statewide minimum wage rate for rideshare drivers will be $1.28 per mile and $0.31 per minute. The rule will override the higher rate the Minneapolis City Council had initially proposed. “When you take it as a blended rate, that results in a 20% increase in pay for drivers in the state of Minnesota,” the state’s Democratic House Majority Leader Jamie Long told reporters Saturday night.