The Minnesota Senate on Sunday passed a bill that would guarantee minimum wages and other benefits to Uber and Lyft drivers and sent the bill to Gov. Tim Waltz.
Passed by a narrow margin of 35-32 after earlier approval by a 69-61 majority in the state House of Representatives, ending a dramatic week of political bargaining as the bill passed Congress before the end of the session on Monday was hit. Uber and Lyft drivers are known as gig workers because they are treated as independent contractors. This means that you are responsible for your own expenses and there is no guaranteed minimum wage, medical care or other benefits.
If the bill is signed by the governor, Uber and Lyft will be required to pay drivers at least $1.45 per mile they drive with passengers, or $1.34 per mile outside the Minneapolis-St. Pole area — also $0.34 per minute. It also established an appeals process that allows drivers to request reconsideration if they feel they have been unfairly disabled from the platform, and calls for more transparency on how drivers’ earnings are calculated.
Mr. Waltz called This bill is an “important bill” Said It means more discussion is needed before he signs.
The bill marks a rare victory for labor advocates in a long-running battle across multiple states for gig driver rights and economic status. Uber and Lyft have long argued that their drivers are independent contractors, not employees. They say the reason drivers prefer contractors is because they have the flexibility to choose their working hours, and many only work part-time.
Labor advocates, however, argue that drivers are exploited by companies and misclassified as independent, even though ride-hailing services have significant control over drivers’ jobs. .
The federal government has largely avoided getting involved in the debate, and the U.S. Department of Labor has neither prosecuted nor targeted Uber or Lyft for misclassifying workers. Instead, the issue played out in state courts, legislatures, and voting methods.
New York City and Seattle have passed laws guaranteeing minimum wages for gig drivers, and other parts of California and Washington State have successfully enacted preferred rules for companies. Both states have enacted laws that guarantee drivers certain benefits, such as a minimum wage, but prevent them from becoming employees. Last year, a similar corporate-backed effort was dismissed by a Massachusetts judge.
Senator Omar Fateh, one of the bill’s authors, welcomed the bill’s passing. “These workers are entitled to adequate wages to support themselves and their families.”
Fateh and gig drivers from the Uber/Lift Drivers Association of Minnesota, a group that supports the bill, celebrated outside Congress on Sunday.
Uber said it was disappointed with the bill’s passage. “For months we have been pleading with lawmakers to work with us on a compromise that would increase driver fees without harming passengers, and for months our pleas have been ignored,” said spokesman Freddie Goldstein. “We expect Governor Waltz to reject this proposal,” he added. Specification. “
Uber and Lyft argued that the bill would raise wages too high, and that the nullification appeals process would limit their ability to bar drivers accused of misconduct from participating. The companies argue that additional costs will be passed on to passengers, forcing them to pay more, instead offering guarantees of $1.17 per mile and $0.34 per minute. Uber has said it may cut service in Minnesota, something it has made similar threats to in other states in the past.
In a message to customers in Minnesota, Uber said, “If this bill passes, we will unfortunately be forced to significantly reduce service and, in some cases, shut down operations entirely statewide. Let’s go,” he said.
Lyft warned customers that fares could more than double if the bill passed, making “ride-sharing an expensive luxury.”
