Minneapolis City Council moving towards minimum wage for rideshare drivers

MINNEAPOLIS – Drivers for rideshare companies like Uber and Lyft could soon be entitled to minimum compensation for miles and minutes driven in the city of Minneapolis.

A proposed ordinance is headed to the city council for a vote as early as Aug. 17.

“In the City of Minneapolis, we’re going to do what we were elected to do, and that is pass policies that protect people and respect their rights,” councilman Jamal Osman told WCCO News. “[Uber and Lyft] are companies that have been doing business with absolutely no regulation. Every other business in Minneapolis has to follow city policies.”

 Minneapolis considers minimum wage for Uber, Lyft drivers

The proposed ordinance is similar to the one passed by state lawmakers in May, which was then vetoed by Gov. Tim Walz, after threats from Uber to halt operations outside the Twin Cities.

“You take it into consideration, certainly,” Walz said on May 25. “I don’t necessarily view that they’re evil in this but I do believe there needs to be more transparency in how this works. There’s concerns coming from the disability community, some of the victims and domestic violence, folks who use Uber to get out of these tough situations are simply not comfortable with where this is at,” Walz said. “Dakota County had concerns about this because folks who receive services and go to appointments use Uber and are reimbursed through the county, so it does matter to me what they say. That’s why I want them at the table in a transparent manner, working with drivers, working with riders, working with disability communities to find a working solution that’s good for all of us.”

Walz, however, did sign an executive order establishing a task force to come up with a compromise; the working group is comprised of legislators, drivers, rideshare company representatives, members of the disability community, labor, riders, and others, and is expected to issue recommendations for furthering rideshare legislation next session.

Walz vetoes rideshare wages bill after Uber threatens to halt operations outside Twin Cities over it

As that work continues, there’s pressure on Minneapolis council members then to pump the brakes.

“Our organization opposes unilateral action for our city only, especially when there is a process underway, initiated by Gov. Walz, to develop a workable statewide policy,” Steve Cramer, president and CEO of Minneapolis Downtown Council, wrote to council members. “Rideshare is an essential component of the mobility network. This industry entered the economy as a disruptive innovation. Over time various measures – some introduced by companies, others by public action – have been adopted to address concerns around passenger safety, operations, driver well-being and other such topics. This is part of the necessary and appropriate evolution of a new industry.”

Mayor Jacob Frey’s office released this statement:

Mayor Frey supports drivers being paid more. How to get there is very complex and requires more information. This ordinance has moved through the legislative process with little deliberation, and there is essential information needed — including from TNCs — to make good, transparent policy decisions. The mayor will continue discussions with stakeholders before making a final decision.

Rideshare drivers nationwide have battled for better pay and benefits for years. In November 2020, California voters approved a contentious state proposition that exempted Uber, Lyft and other app-based platforms from classifying their drivers as employees rather than independent contractors. The change would have required the companies to provide benefits such as sick leave and health insurance.

Last year, Washington state passed a similar law to Minnesota’s bill, which requires rideshare drivers to be paid $1.50 per mile and 64 cents per minute in Seattle and $1.27 per mile and 37 cents per minute outside Seattle. Rideshare companies are also required to provide drivers with sick leave and workers’ compensation.

In 2018, New York City became the first U.S. city to set a minimum wage for rideshare drivers. As of 2023, that rate is $1.31 per mile and 56 cents per minute for trips within New York City. The per-mile rate goes up to $1.70 for wheelchair-accessible vehicles. Both rates increase for trips outside of the city.  

Below are transcripts from the public hearings involving Lyft and Uber.