Uber, Lyft Agree on Minimum Wage Standards for Drivers in Minnesota, Legislators Announce
By Trisha Andrada
May 20, 2024 06:01 AM EDT
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May 20, 2024 06:01 AM EDT
Minnesota legislators revealed Saturday, May 18, that the state's government had reached an agreement with Uber and Lyft to establish minimum wage requirements for their drivers.
After almost a year of negotiations, the two corporations and Democratic state leaders finally reached a deal. In a report by CNN, the legislation was first passed in August 2023 as part of a broader initiative to provide contract workers with better benefits. It specified that drivers must earn at least $0.51 per minute and $1.40 per mile.
The regulation was postponed until July 1 after the two ridesharing companies threatened to withdraw from Minneapolis.
The new deal sets a minimum pay of $1.28 per mile and $0.31 per minute for rideshare drivers across the state, according to CNN. This regulation will take precedence over the Minneapolis City Council's original proposal for a higher rate.
Democratic House Majority Leader Jamie Long told reporters on Saturday that when the drivers' wages are considered as a whole, it amounts to a 20% increase. In addition, the measure has the most robust insurance package for drivers.
Democratic Senate Majority Leader Erin Murphy said it was a "hard-fought compromise," referring to the wage discussions that had to balance the demands of workers with those of Minnesota residents who depend on rideshares.
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