Uber, Lyft Agree on Minimum Wage Standards for Drivers in Minnesota, Legislators Announce
By Trisha Andrada
May 20, 2024 06:01 AM EDT
May 20, 2024 06:01 AM EDT
(Photo : ROBYN BECK/AFP via Getty Images)
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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