Published: Monday, May 20, 2020
The Minnesota state legislature passed a bill that would increase the pay of Uber and Lyft driver in Minnesota, which lawmakers believe will prevent the companies leaving the market.
ST. PAUL (Minn.) — The Minnesota state legislature advanced a plan on Sunday to increase pay for Uber drivers and Lyft drivers, which lawmakers believe will prevent these companies from leaving the Minnesota market.
The House approved the compensation bill, but it was delayed in the Senate until the adjournment deadline. Now, the bill will be sent to Governor. The Star Tribune reported that Tim Walz will sign the bill into law.
Democrats crafted the proposal that was initially approved in the House to replace the Minneapolis City Council’s minimum wage measure that caused Uber and Lyft, the two largest taxi companies of the state, to threaten leaving the city.
After a full day of negotiation, the House reached an agreement on Saturday that would establish a minimum wage rate of $1.28 for each mile and 31 cents for every minute. Uber says it will continue to operate in the state at these rates. If passed, the bill would go into effect in January next year.
Uber spokesperson Josh Gold told the Star Tribune that “while the price hikes may be hurtful to both drivers and riders, we can continue to operate in the State thanks to the compromise brokered the Governor.”
The Associated Press emailed Lyft about the deal, but representatives did not immediately respond.
Companies objected to the measure, which would have paid drivers $1.40 for every mile, 51 cents for each minute, or $5 per ride – whichever was greater – excluding tips.
Marianna Brown is the vice president of Minnesota Uber/Lyft Drivers Association. She told the Star Tribune, that although the pay rate was lower than what drivers wanted, they were still happy with the outcome.
After the House passed the bill, the Governor posted on the social media platform X a statement saying that the deal gives rideshare drivers a 20 percent raise and keeps this important service operating in Minnesota. I’m thankful to our partners from the House and Senate DFL who came together to make this happen.
Source: ABC News